Schweizer (2017) provides a powerful and general way of using compensation payments to induce efficient actions. Its application to takings under fiscal illusion, however, is problematic. A better model would assume that the government decides to take property by considering effects on the median voter. Under that assumption, payments based on the market value of land, assuming non-excessive investment, induce efficient action by both landowners and the government.
Constitutional Law | Law | Law and Economics | Property Law and Real Estate
Date of this Version
Daniel M. Klerman, "Takings, Fiscal Illusion, and the Median Voter" (August 2016). University of Southern California Legal Studies Working Paper Series. Working Paper 216.