In this paper, I present a model of the articulations between the formal and informal mechanisms of housing production with the objective to analyze the causes of the rise and persistence of informal settlements in the developing world. The model is based on System Dynamics, a method of simulation that deals with complex systems characterized by dynamic behavior, and is tested using the case of Bogotá, Colombia, a city known by the prevalence of informal housing markets and its rich experience in the implementation of public policies to address informality. The final results and policy experiments show that informality arises from the inadequacy of a system of infrastructure financing based on tariffs and cross-subsidization and from the unintended consequences of classic interventions to deal with this problem such as settlement up-grading and the provision of public housing. A preventive policy based on dismantling these interventions and increasing the supply of land with urban services through a change in the system of infrastructure funding shifting the source of financing from cross-subsidies to property taxation is proven to be a more cost-effective method to mitigate the negative consequences of informality.

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Date created

• 2011 July 24-2011 July 28

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

28441c340962a2b363963713d1bba533

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Part of

e35e9d46c0556df862a8fbb9e32d2143

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Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives