A Simple Model of Squatters

Eli Remolona

Philippine Review of Economics, 1984, vol. 21, issue 1&2, 101-111

Abstract: The object of the model is to determine the number of squatters in a city. In the model, households with incomes below a certain threshold level of income choose to squat and households with incomes above that threshold choose not to squat. This threshold depends on the amount of land available to each squatter household, which itself depends on the number of households choosing to be squatters. The equilibrium established consists of values for the threshold and the amount of land per squatter household that are both consistent with utility-maximizing choices, given such factors as the rate of eviction and the distribution of income, An increase in the rate of eviction will reduce the equilibrium number of squatters in a city even if the total amount of squatter land remains fixed. Fewer households choose to squat because of this higher risk of eviction. A numerical example is presented to show how plausible the model is.

Date: 1984
References: Add references at CitEc
Citations:

Downloads: (external link)
http://pre.econ.upd.edu.ph/index.php/pre/article/download/335/324 (application/pdf)

Related works:
Working Paper: A Simple Model of Squatters (1979)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:prejrn:v:21:y:1984:i:1&2:p:101-111

Access Statistics for this article

More articles in Philippine Review of Economics from University of the Philippines School of Economics and Philippine Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by HR Rabe ().