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The Use of Eminent Domain for Economic Development in the Era of Kelo

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Listed:
  • Steven P. Lanza
  • Thomas J. Miceli
  • C. F. Sirmans
  • Moussa Diop

Abstract

The Supreme Court decision in Kelo v. New London (2005) authorized the use of eminent domain for economic redevelopment provided that there are sufficient spillover benefits to the public. This article examines the economic basis for this decision and tests the conclusions using cross-state data on “development takings†over the period 1998 to 2002. It also examines the political responses by states to limit such takings in the aftermath of Kelo . The results are consistent with the economic justification for eminent domain as a means of overcoming the holdout problem.

Suggested Citation

  • Steven P. Lanza & Thomas J. Miceli & C. F. Sirmans & Moussa Diop, 2013. "The Use of Eminent Domain for Economic Development in the Era of Kelo," Economic Development Quarterly, , vol. 27(4), pages 352-362, November.
    • Handle: RePEc:sae:ecdequ:v:27:y:2013:i:4:p:352-362
    DOI: 10.1177/0891242413493661
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    References listed on IDEAS

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    4. Munch, Patricia, 1976. "An Economic Analysis of Eminent Domain," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 473-497, June.
    5. Carrie B. Kerekes, 2011. "Government Takings: Determinants of Eminent Domain," American Law and Economics Review, American Law and Economics Association, vol. 13(1), pages 201-219.
    6. Turnbull Geoffrey K & Salvino Robert F., 2009. "Do Broader Eminent Domain Powers Increase Government Size?," Review of Law & Economics, De Gruyter, vol. 5(1), pages 785-806, December.
    7. Fischel, William A., 1995. "The offer/ask disparity and just compensation for takings: A constitutional choice perspective," International Review of Law and Economics, Elsevier, vol. 15(2), pages 187-203, June.
    8. Miceli,Thomas J., 2011. "The Economic Theory of Eminent Domain," Cambridge Books, Cambridge University Press, number 9781107005259.
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    Cited by:

    1. Paul F. Byrne, 2017. "Have Post-Kelo Restrictions on Eminent Domain Influenced State Economic Development?," Economic Development Quarterly, , vol. 31(1), pages 81-91, February.
    2. Kanazawa, Mark, 2023. "Politics and eminent domain: Evidence from the 1879 California constitution," Explorations in Economic History, Elsevier, vol. 90(C).
    3. Thomas J. Miceli & Kathleen Segerson, 2021. "Assessing Kelo’s Legacy: Do Increased Taxes and New Jobs Justify Use of Eminent Domain?," The Journal of Real Estate Finance and Economics, Springer, vol. 63(2), pages 161-176, August.
    4. Turnbull Geoffrey & Salvino Robert & Tasto Michael, 2018. "Using Eminent Domain for Economic Development: Does it Increase Private Sector Employment?," Review of Law & Economics, De Gruyter, vol. 14(3), pages 1-24, November.
    5. Thomas J. Miceli, 2016. "The Cost of Kelo," Public Finance Review, , vol. 44(4), pages 500-522, July.
    6. Kim, Iljoong & Park, Sungkyu, 2018. "Private takings: Empirical evidence of post-taking performance," Journal of Housing Economics, Elsevier, vol. 39(C), pages 25-32.
    7. Ronit Levine‐Schnur, 2023. "Is the government exhausting its powers? An empirical examination of eminent domain exercises in New York City pre‐ and post‐Kelo," Regulation & Governance, John Wiley & Sons, vol. 17(2), pages 449-468, April.

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