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A theory of land market activity is developed for settings where there is uncertainty and private information about the security of land tenure. Land sellers match with buyers in a competitive search environment, and an illiquid land market emerges as a screening mechanism.
With an estimated loss of up to 20 million ha of forest over the past decade, deforestation in Indonesia has come to the forefront of global environmental concerns. Indonesia is one of the most important areas of tropical forests worldwide.
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