RT Journal Article
SR Electronic
T1 Property Rights by Squatting: Land Ownership Risk and Adverse Possession Statutes
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 360
OP 370
DO 10.2307/3147130
VO 77
IS 3
A1 Baker, Matthew
A1 Miceli, Thomas
A1 Sirmans, C. F.
A1 Turnbull, Geoffrey K.
YR 2001
UL http://le.uwpress.org/content/77/3/360.abstract
AB A fundamental aspect of private property is the right to exclude trespassers or squatters. Nonetheless, in all 50 states a trespasser can acquire ownership by continuously occupying a parcel of land until the statutorily set period of limitations runs out. Although these adverse possession statutes appear to weaken property rights, this paper explains how such limits are valuable to property owners by balancing the risk of claims from past legitimate owners against the cost of expelling future trespassers or squatters. The empirical analysis using data from 46 states provides evidence that is consistent with the theory. (JEL K11, Q15)