What is Title Guarantee Worth in Land Markets? Evidence from Bengaluru, India

Land reforms require urgent attention in emerging market economies, and there is a vast body of literature that deals with the economic impact land reforms, especially land titling (Acemoglu et al., 2001). India, like other developing economies, has a presumptive titling system which is notoriously inefficient: a law that is in the draft stages of consultation is the Draft Land Titling Bill, 2011, which seeks to replace presumptive titles with conclusive ones. However, there is no study that has looked at the cost of not having an appropriate titling system. In this study, I attempt to quantify the premium paid towards title by using a quasi-natural experiment on differential titles that is available in the Indian market, utilising land prices in Bangalore, India.