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Fairness in Urban Land Use: An Evolutionary Contribution to Law & Economics

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Christian Schubert ()

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Abstract

Markets for complex, multi-faceted goods normally require a complex institutional framework to function properly, i.e., to lead to patterns of outcomes that are deemed acceptable by the individuals involved. This paper examines the institutional underpinnings of the market for urban land use rights, taking both German and U.S. public and private land use law as a case in point. Apart from efficiency considerations that have been discussed in the literature, the individuals' preferences regarding the fairness of (i) the contents of urban land use rights and (ii) the distribution of costs and benefits induced by innovative land uses have been largely neglected. It is argued that investigating the impact of these preferences (and the underlying informal fairness norms) on the legal treatment of land use rights provides a key opportunity to construct an alternative Law & Economics approach that is compatible with an evolutionary perspective on economic land use decisions.

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Paper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Econonmics and Evolution with number 2005-22.

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Length: 30 pages
Date of creation: Dec 2006
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Handle: RePEc:esi:evopap:2005-22

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Related research
Keywords: externalities takings land use law distributive fairness procedural fairness

Find related papers by JEL classification:
K11 - Law and Economics - - Basic Areas of Law - - - Property Law
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns

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References listed on IDEAS
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  1. Bromley, Daniel W, 1997. "Constitutional Political Economy: Property Claims in a Dynamic World," Contemporary Economic Policy, Oxford University Press, vol. 15(4), pages 43-54, October.
  2. Iljoong Kim & Jaehong Kim, 2004. "Efficiency of Posner's Nuisance Rule: A Reconsideration," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(2), pages 327-, June.
  3. Bruno Frey & Matthias Benz & Alois Stutzer, 2004. "Introducing Procedural Utility: Not Only What, but Also How Matters," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(3), pages 377-, September.
    Other versions:
  4. Frey, Bruno S & Oberholzer-Gee, Felix & Eichenberger, Reiner, 1996. "The Old Lady Visits Your Backyard: A Tale of Morals and Markets," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1297-1313, December. [Downloadable!] (restricted)
  5. Blume, Lawrence & Rubinfeld, Daniel L & Shapiro, Perry, 1984. "The Taking of Land: When Should Compensation Be Paid?," The Quarterly Journal of Economics, MIT Press, vol. 99(1), pages 71-92, February. [Downloadable!] (restricted)
  6. Witt, Ulrich, 1996. " Innovations, Externalities and the Problem of Economic Progress," Public Choice, Springer, vol. 89(1-2), pages 113-30, October.
  7. Baumol, William J & Bradford, David F, 1972. "Detrimental Externalities and Non-Convexity of the Production Set," Economica, London School of Economics and Political Science, vol. 39(154), pages 160-76, May. [Downloadable!] (restricted)
  8. Fischel, William A. & Shapiro, Perry, 1989. "A constitutional choice model of compensation for takings," International Review of Law and Economics, Elsevier, vol. 9(2), pages 115-128, December. [Downloadable!] (restricted)
  9. Schlicht, Ekkehart, 1996. "Exploiting the Coase Mechanism: The Extortion Problem," Kyklos, Blackwell Publishing, vol. 49(3), pages 319-30.
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