QUESTION 1

Eviction threats from the government or developers represent an example of expropriation risk. Which of the following statements about home investment and expropriation risk conform to theories discussed in class?

A.Land titling programs should improve tenure security and increase expropriation risk.

B.Land titling programs should improve tenure security and reduce expropriation risk.

C.Greater expropriation risk will increase incentives for making home improvements.

D.Greater expropriation risk will reduce incentives for making home improvements.

E.(A) and (C)

F.(B) and (D)

G.None of the above.

QUESTION 2

Which of the following statements best characterizes the findings of Field (2005) in her study of the impacts of Peru's land titling program?

A.Land titles led to a substantial increase in home improvements, but these renovations were largely financed out of pocket, instead of through borrowing from private financial markets.

B.Land titles led to a substantial increase in home improvements, and people with titles found that they now had access to collateral, so they borrowed for these investments.

C.Issuing land titles was associated with no change in home improvements.

D.All of the above

QUESTION 3

In Triumph of the City, Glaeser offers a number of ideas about slums in developing countries and ways to improve them. Which statement best reflects his views?

A.Slum growth has been uncontrolled, and more efforts should be made to improve livelihoods in rural areas, so that rural to urban migration slows down.

B.Slums should be eradicated because they are persistent poverty traps with terrible neighborhood effects.

C.Slums should not disappear, because they are only temporary phenomena that give residents access to jobs and help them escape poverty.

D.None of the above.

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