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This paper contributes to an emerging literature on free land arrangements in developing countries. We argue that in-depth empirical analysis is crucial to understand the specific terms of land arrangements.
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.
Russia has experienced dramatic changes in land ownership and tenure since 1991: agricultural land has been largely privatized, individual landowners now have legal rights to most agricultural land in the country, and prohibitions on buying and selling of land have been recently removed.
We propose a theory of urban land use with endogenous property rights that applies to cities in developing countries. Households compete for where to live in the city and choose the property rights they purchase from a land administration which collects fees in inequitable ways.
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