PROPERTY RIGHT ACQUISITION AND PATH DEPENDENCE: NINETEENTH-CENTURY LAND POLICY AND MODERN ECONOMIC OUTCOMES

Douglas W. Allen, Bryan Leonard

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

In this paper we compare lands settled between 1862-1940 under the Homestead Act to lands that sold for cash during the same time. We combine recently digitised individual land patents with modern satellite data and find a negative effect of homesteading on modern land use that cannot be explained by land quality, title characteristics or unobserved differences in settlers. We test the hypothesis that early homestead settlement put homesteaders 'in the way' of future development, creating a path dependence in land use decisions for homesteads, despite the fact that their legal rights were identical to purchased lands.

Original languageEnglish (US)
Pages (from-to)3073-3102
Number of pages30
JournalEconomic Journal
Volume131
Issue number640
DOIs
StatePublished - Nov 1 2021
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics

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