I wrote previously about how to allocate land in Jubilee. One of the problems to be solved by this procedure was that people in Jubilee might have no incentive to improve land that they had no assurance they would continue to enjoy access to in future. I described strategies that owners of improvements (and their bidding rivals) might use, and concluded that owners of improvements who wanted to retain access to the land could arrange to pay for only the unimproved value of the land.
However, I’m not satisfied with the strategies I described there. First, they rely on good estimates of the value that other bidders might place on the land and improvements (separately and together). Second, I considered only one rival bidder other than the owner of the improvements; in reality, there may be several bidders, some placing a high value on the land with the improvements and a low value on the land alone, and others placing a high value on the land alone.
So, can we do better? Continue reading An auction process for preserving incentives to improve land in Jubilee
Earlier this week, I wrote about an alternative to permanent land ownership, arguing that permanent land ownership benefited those originally allocated the permanent ownership, at the expense of future generations. The alternative involved allocating land every 17 years to everyone in a hypothetical town called Jubilee.
But how is this allocation performed? Who decides how to divide the land so that everyone receives an equally valuable plot?
Also, Eric Crampton raises an objection that reallocation every 17 years destroys incentives to invest in improving the land for long-term benefit. Can we restore these incentives? Continue reading How to allocate land in Jubilee
Imagine a town and some surrounding farmland. Let’s call this place Jubilee. In Jubilee, no-one permanently owns any of the land. Instead, every 17 years, everyone living in Jubilee is allocated land in a way that ensures everyone has land of roughly equal value.1
What effect does this have on the people of Jubilee? How would they see our system of land tenure? Continue reading A land tenure thought experiment