Colonial Legacy and Land Market Formality

Harari, Mariaflavia and Wong, Maisy (2024): Colonial Legacy and Land Market Formality.

Abstract

We study the role of Dutch colonial institutions on urban development for the megacity of Jakarta, Indonesia. Using historical maps of Dutch settlements and a rich granular database, we implement a boundary discontinuity design comparing locations within 200 meters of Dutch boundaries. We find that historical Dutch areas today have significantly lower parcel density, are more likely to have formally registered parcels, and have more regular parcel layout, pointing to the importance of planning and mapping. Dutch settlements are also more likely to appear formal, as per a photographic index that ranks the appearance of neighborhoods. More broadly, Dutch areas are 11 percentage points more likely to have tall buildings (with more than 3 floors) and have 17 log points higher assessed land values. We consider channels such as natural advantage, direct Dutch investments, and land market institutions.

• Item Type: MPRA Paper
• Language: English
• Keywords: Urbanization, Property Rights, Informality, Institutions
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R0 - General

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