Land Reforms in Developing Financial Markets: Lessons from England’s Land Enclosures 1750-1830

Land privatization, or ``titling,'' is a cornerstone of development policy. While titling is typically thought to improve allocational efficiency, its impact on financial markets remains less understood. We study the financial role of titling by leveraging an ideal institutional setting in 1750 - 1830 England, in which land with common use rights was gradually privatized. Informed by key institutional and financial features in England during this time, we develop a theory of the nexus between titling reforms, credit market access, and the use of land as collateral. Using a novel database of personal defaults, we find that titling land with common use rights raises local bankruptcies, a key prediction of our model. The effect is especially pronounced in industrialized regions, among industrial occupations, and during downturns, highlighting that local economic conditions are pivotal in determining the financial effect of land reforms.