Economic Determinants of Land Invasions

F. Daniel Hidalgo, Suresh Naidu, Simeon Nichter and Neal Richardson
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F. Daniel Hidalgo: University of California, Berkeley
Suresh Naidu: Columbia University
Simeon Nichter: Stanford University
Neal Richardson: University of California, Berkeley

The Review of Economics and Statistics, 2010, vol. 92, issue 3, 505-523

Abstract: This study estimates the effect of economic conditions on redistributive conflict. We examine land invasions in Brazil using a panel data set with over 50,000 municipality-year observations. Adverse economic shocks, instrumented by rainfall, cause the rural poor to invade and occupy large landholdings. This effect exhibits substantial heterogeneity by land inequality and land tenure systems, but not by other observable variables. In highly unequal municipalities, negative income shocks cause twice as many land invasions as in municipalities with average land inequality. Cross-sectional estimates using fine within-region variation also suggest the importance of land inequality in explaining redistributive conflict. © 2010 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2010
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