
Contents
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1. Overview of the Case Law 1. Overview of the Case Law
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1.1 The Physical Invasion Test 1.1 The Physical Invasion Test
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1.2 The Noxious Use Doctrine 1.2 The Noxious Use Doctrine
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1.3 The Diminution of Value Test 1.3 The Diminution of Value Test
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1.4 The Penn Central Balancing Test 1.4 The Penn Central Balancing Test
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1.5 The Nuisance Exception 1.5 The Nuisance Exception
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1.6 Wetlands and Endangered Species Protection 1.6 Wetlands and Endangered Species Protection
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2. Other Proposed Tests for Compensation 2. Other Proposed Tests for Compensation
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3. Role of Economics in the Takings Debate 3. Role of Economics in the Takings Debate
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4. Economic Models of Land Use and Regulation 4. Economic Models of Land Use and Regulation
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4.1 Exogenous Probability of a Taking 4.1 Exogenous Probability of a Taking
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4.2 Endogenous Probability of a Taking 4.2 Endogenous Probability of a Taking
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4.2.1 Benevolent (Pigovian) Government 4.2.1 Benevolent (Pigovian) Government
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4.2.2 Nonbenevolent (Majoritarian) Government 4.2.2 Nonbenevolent (Majoritarian) Government
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4.3 Constitutional Choice Models 4.3 Constitutional Choice Models
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4.4 Dynamic Models of Development 4.4 Dynamic Models of Development
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4.4.1 The Timing of Development 4.4.1 The Timing of Development
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4.4.2 Capitalization and Compensation 4.4.2 Capitalization and Compensation
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4.5 Balancing Risk and Incentives 4.5 Balancing Risk and Incentives
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4.6 The Social Cost of Funds 4.6 The Social Cost of Funds
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5. In-Kind Compensation 5. In-Kind Compensation
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5.1 Neighborhood Externalities and Compensation 5.1 Neighborhood Externalities and Compensation
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5.2 The Essential Nexus and Proportionality Requirements 5.2 The Essential Nexus and Proportionality Requirements
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6. Summary of Economic Research on Takings Law and Future Directions 6. Summary of Economic Research on Takings Law and Future Directions
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Acknowledgments Acknowledgments
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References References
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25 Regulatory Takings
Get accessThomas J. Miceli is Professor in the Department of Economics at University of Connecticut.
Kathleen Segerson is Philip E. Austin Professor in the Department of Economics at University of Connecticut.
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Published:02 September 2014
Cite
Abstract
The regulatory takings issue potentially arises whenever a government regulation restricts the use of private property without actually seizing title to it (as would occur under eminent domain). A regulatory taking occurs when the regulation reduces the value of private property to such a degree that the owner is entitled to compensation under the Fifth Amendment Takings Clause. This chapter reviews legal and economic theories aimed at determining when a regulation crosses the compensation threshold. We do this using a simple model of takings or land use regulation that provides a unifying framework for discussing the economics of regulatory takings. We use the model to illustrate both basic economic principles related to compensation and a number of extensions that have been considered in the literature. The main focus is on assessing the consequences of various compensation rules on the efficiency of land use decisions and government policy making.
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