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Land titles in risk-constrained rural markets Boucher, Barham and Carter

Land titles in risk-constrained rural markets Boucher, Barham and Carter. Discussion: Karen Macours. Impacts of land titles. Mixed evidence on the impact of titles on supply and demand for credit for small-holder agriculture This paper considers the role of risk

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Land titles in risk-constrained rural markets Boucher, Barham and Carter

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  1. Land titles in risk-constrained rural marketsBoucher, Barham and Carter Discussion: Karen Macours

  2. Impacts of land titles • Mixed evidence on the impact of titles on supply and demand for credit for small-holder agriculture • This paper considers the role of risk • 40% of households in Honduras, Nicaragua and Peru are credit constrained • Many of those report not to apply for credit for fear of losing collateral • What then is the likely impact of titling programs • Are there complementary interventions: insurance?

  3. Comments • Theory: credit-mechanisms • Variation in titles • Variation in risk rationing • Interpretation results • Attrition? • Changes instead of levels?

  4. Value of collateral? • Which credit-mechanisms are available plays a role in value of title • Is all titled land accepted as good collateral? • How important are MFIs compared to others… ~ theory assumes that if title, land can be used as collateral

  5. Variation in the data : titles • Panel data, and subset of households (from peasant communities) received title between 2 panel years • Unclear what determines variation in timing of title within peasant communities (~ exogenous?) • Empirics use both time-series and cross-section variation: data is used as a pooled cross-section, and possibility to control for unobservables hence not exploited

  6. Variation in data: risk rationed • Increase in risk rationing for private land and peasant communities: • Other changes in the period? • Past shocks? • Changes in financial system? • Permanent change in perceptions?

  7. Interpretation of results • Table 4: title is negatively correlated with 3 types of rationing => if title: more likely to obtain loan • Coefficient estimates do not appear to be significantly different • How to account for that in graphical interpretation?

  8. Changes instead of levels? • Analyzing changes in rationing category will allow to control for many unobservables • Consider how change in title interacts with different types of rationing when considering changes in efficiency or welfare outcomes?

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