The Effect of Checkerboard Land Ownership Pattern on Land Markets

Abstract: In this study we examine the effect of a constraint on land configurations using two different property rights regimes- checkerboard and non-checkerboard lands- on private land markets. The checkerboard land ownership pattern refers to an alternating section pattern of public and private lands created by the land grants of the late nineteenth century. Given the rectangular survey (RS) grid of the United States, each 640 acres (1 square mile) section of private land inside the checkerboard is surrounded by public land on all four sides. We develop an economic framework for conducting comparative analysis of private lands inside and outside the checkerboard. We develop five measures of “checkerboardedness” to account for depth and extent of the checkerboard. The empirical analysis focuses on Douglas County, Oregon where private lands are present in and outside the checkerboard. The empirical estimates indicate that checkerboard lands have lower land values per acre and lower private roads density compared to non-checkerboard lands, all else equal.