| Abstract: | This article explores the nature of property rights systems,their evolution, and their effect on resource allocation. Itis argued that certain institutional arrangements for land rightshave evolved in order to reduce uncertainty and increase efficiencyin credit as well as in land markets. Of particular relevanceto developing countries, the article emphasizes the contributionof public sector infrastructure to effective land rights systems.An appendix to the article presents a formal model analyzingthe effects of security of land rights on land prices, the intensityof cultivation, and the use of credit. Empirical evidence fromThailand supports several of the propositions derived from themodel. |
