Dead Capital or Preserved Heritage? Evaluating the Uniform Partition of Heirs' Property Act's Effect on Land Development

Heirs' property, land passed down informally without a clear title, poses significant economic challenges due to the tragedy of the anti‐commons. This study examines the impact of the Uniform Partition of Heirs' Property Act (UPHPA) on land use patterns in U.S. counties with high concentrations of heirs' property. Using a staggered difference‐in‐differences (DID) methodology and county‐level data from 2010 to 2022, our analysis reveals that the UPHPA is associated with declines in the amount of developed land in treated counties relative to control counties and the magnitude of the decline increases with heirs' property intensity. Our results suggest the act helps maintain the status quo rather than resolving the economic inefficiencies associated with heirs' property. These findings highlight the need for additional policies to address the underlying issues of unclear titles and limited access to financial resources to promote efficient land use, economic development, and wealth generation.