PropertyProf Blog

Editor: Stephen Clowney
Univ. of Kentucky College of Law

A Member of the Law Professor Blogs Network

Monday, December 3, 2007

Shavell on Government Land Acquisition

Steven Shavell (Harvard Law School) has posted Eminent Domain versus Government Purchase of Land Given Imperfect Information about Owners' Valuations on SSRN.  Here's the abstract:

Governments employ two basic policies for acquiring land: taking it through exercise of their power of eminent domain; and purchasing it. The social desirability of these two policies is compared in a model in which the government's information about landowners' valuations is imperfect. Under this assumption, the policy of purchase possesses the market test advantage that the government obtains land only if an owner's valuation is low enough that he is willing to sell it. However, the policy suffers from a drawback when the land that the government needs is owned by many parties. In that case, the government's acquisition will fail if any of the owners refuses to sell. Hence, the policy of eminent domain becomes appealing if the number of owners of the land is large. This conclusion holds regardless of whether the land that the government seeks is a parcel at a fixed location or instead may be located anywhere in a region.

Ben Barros

[Comments are held for approval, so there will be some delay in posting]

http://lawprofessors.typepad.com/property/2007/12/shavell-on-gove.html

Recent Scholarship, Takings | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00e54f94873a8833

Listed below are links to weblogs that reference Shavell on Government Land Acquisition:

Comments

Post a comment