Land Price, Bubbles and Permit Raj

Gurbachan Singh

Review of Market Integration, 2016, vol. 8, issue 1-2, 1-33

Abstract: Even where adequate land is available for urban development, there can be high persistent land prices and high-rise buildings. Why? Are high prices always related to bubbles? This article examines these questions. It reconsiders whether high rural land price causes high urban land price or it is the other way round. It is shown that the root cause can lie elsewhere in the Permit Raj in the real estate sector. Dismantling this can make housing more affordable, and increase the economic surplus, potentially providing more room for welfare schemes including those related to land and housing.

Keywords: Bubble; dead-weight loss; floor area ratio; affordable housing schemes; fundamental value; shadow price; India (search for similar items in EconPapers)
JEL-codes: R31 R38 R52 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:sae:revmar:v:8:y:2016:i:1-2:p:1-33

DOI: 10.1177/0974929216683115

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