- Series Information
- List of Contributors
- Introduction: Land as an Integrating Theme in Economics
- Integrating Regional Economic Development Analysis and Land Use Economics
- Technology Adoption and Land Use
- Are Large Metropolitan Areas Still Viable?
- Modeling the Land Use Change with Biofuels
- Modeling the Determinants of Farmland Values in the United States
- Land Use and Sustainable Economic Development: Developing World
- The Economics of Wildlife Conservation
- Connecting Ecosystem Services to Land Use: Implications for Valuation and Policy
- Land Use and Climate Change
- Land Use, Climate Change, and Ecosystem Services
- Fire: An Agent and a Consequence of Land Use Change
- Land Use and Municipal Profiles
- An Assessment of Empirical Methods for Modeling Land Use
- Equilibrium Sorting Models of Land Use and Residential Choice
- Landscape Simulations with Econometric-Based Land Use Models
- An Economic Perspective on Agent-Based Models of Land Use and Land Cover Change
- Spatial Econometric Modeling of Land Use Change
- Using Quasi-Experimental Methods to Evaluate Land Policies: Application to Maryland’s Priority Funding Legislation
- Applying Experiments to Land Economics: Public Information and Auction Efficiency in Ecosystem Service Markets
- Open Space Preservation: Direct Controls and Fiscal Incentives
- Land Conservation in the United States
- European Agri-Environmental Policy: The Conservation and Re-Creation of Cultural Landscapes
- Agri-Environmental Policies: A Comparison of US and EU Experiences
- Stigmatized Sites and Urban Brownfield Redevelopment
- Regulatory Takings
- Eminent Domain and the Land Assembly Problem
- Future Research Directions in Land Economics
- Subject Index
Abstract and Keywords
This chapter summarizes eminent domain jurisprudence and the main economic approaches to analyzing eminent domain. Eminent domain potentially corrects two inefficiencies in land markets: (1) inefficiency from holdouts and (2) the undersupply of public goods from urban redevelopment. The original model developed in this chapter shows that eminent domain also affects the performance of the land assembly market, and thus market failure must be assessed in light of a third potential land market inefficiency induced by the option for eminent domain. The results also suggest that information asymmetry is a cause of land assembly market failure. The model identifies conditions under which eminent domain is likely to be more efficient than private assembly and vice versa. This model helps assess recent controversies arising following the Kelo case in eminent domain jurisprudence, and it offers a new opportunity for further economic investigation of urban land market failures.
Joshua M. Duke is Professor in the Department of Applied Economics and Statistics at University of Delaware.
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