Economics of the Law: Torts, Contracts, Property, Litigation

By Thomas J. Miceli | Go to book overview

SEVEN
GOVERNMENT TAKING
AND REGULATION OF
PRIVATE PROPERTY

This chapter examines government acquisition and regulation of private property. Unlike private individuals, who must bargain with owners when they wish to acquire property, the government can acquire private property for public use without the owner's consent, provided that it pays just compensation. Thus, private property owners have only liability-rule protection of their property visà-vis the government. The first part of this chapter is an economic analysis of government takings of this sort. It examines the economic justification for the government's power of eminent domain, the meaning of just compensation, and the implications of eminent domain for the land-development decisions of property owners.

In contrast to physical acquisitions or intrusions, government regulation of private property generally does not require compensation. Instead, it is viewed as a legitimate exercise of the government's police power. There is a longstanding question, however, about whether or when a regulation ever becomes so burdensome to a property owner as to require compensation under the takings clause. Regulations that cross this threshold are referred to as regulatory takings. In the second part of this chapter I develop an economic framework for determining where this threshold should be. I then employ the framework to discuss several related topics, such as whether investment-backed expectations are necessary for compensation to be paid, whether capitalization of the threat of regulation into land prices renders the compensation question irrelevant, and what the impact of compensation is on the timing of development.


1. The Economics of Eminent Domain

The Fifth Amendment to the U.S. Constitution guarantees, in part, that the government shall not take private property for public use without paying "just compensation". 1 This seemingly straightforward protection of private property from arbitrary government seizure has generated a large literature attempting to interpret and justify its various components. In this section, I will provide an

-137-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Economics of the Law: Torts, Contracts, Property, Litigation
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 236

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.