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Land Development under the Threat of Taking

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  • Geoffrey K. Turnbull

    () (Department of Economics, Georgia State University)

Abstract

This paper presents a model of the land developer's response to the threat of regulatory taking. It shows that the threat of regulation affects development timing and density differently than the regulation imposed with certainty. Planned development proceeds at a more rapid pace under the taking threat, whereas the development density varies systematically by location in a spatial land market. Further, property on which regulations are actually imposed will be developed later than planned when the demanded density is falling over time. Regulated property, however, may be developed even more quickly than planned when the demanded density is rising over time.

Suggested Citation

  • Geoffrey K. Turnbull, 2002. "Land Development under the Threat of Taking," Southern Economic Journal, Southern Economic Association, vol. 69(2), pages 290-308, October.
  • Handle: RePEc:sej:ancoec:v:69:2:y:2002:p:290-308
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    Cited by:

    1. Ilde Rizzo, 2011. "Regulation," Chapters,in: A Handbook of Cultural Economics, Second Edition, chapter 54 Edward Elgar Publishing.
      • Ilde Rizzo, 2003. "Regulation," Chapters,in: A Handbook of Cultural Economics, chapter 52 Edward Elgar Publishing.
    2. Turnbull, Geoffrey K., 2010. "Irreversible development and eminent domain: Compensation rules, land use and efficiency," Journal of Housing Economics, Elsevier, vol. 19(4), pages 243-254, December.
    3. Winfree, Jason A. & McCluskey, Jill J., 2007. "Takings of development rights with asymmetric information and an endogenous probability of an externality," Journal of Housing Economics, Elsevier, vol. 16(3-4), pages 320-333, November.
    4. Lyytikäinen, Teemu, 2009. "Three-rate property taxation and housing construction," Journal of Urban Economics, Elsevier, vol. 65(3), pages 305-313, May.
    5. Turnbull, Geoffrey K., 2004. "Development moratoria," Journal of Housing Economics, Elsevier, vol. 13(3), pages 155-169, September.
    6. Lee, Tan & Jou, Jyh-Bang, 2007. "The regulation of optimal development density," Journal of Housing Economics, Elsevier, vol. 16(1), pages 21-36, March.
    7. Douglas Noonan & Douglas Krupka, 2010. "Determinants of historic and cultural landmark designation: why we preserve what we preserve," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 1-26.
    8. Maria A. Cunha-e-Sa & Sofia F. Franco, 2012. "Urban Containment: An Effective Tool for Environmental Protection?," FEUNL Working Paper Series wp563, Universidade Nova de Lisboa, Faculdade de Economia.
    9. Thomas J. Miceli & Kathleen Segerson, 2011. "Regulatory Takings," Working papers 2011-16, University of Connecticut, Department of Economics.
    10. Nizalov, Denys & Thornsbury, Suzanne & Loveridge, Scott & Woods, Mollie & Zadorozhna, Olha, 2016. "Security of property rights and transition in land use," Journal of Comparative Economics, Elsevier, pages 76-91.
    11. Douglas Noonan & Douglas Krupka, 2010. "Determinants of historic and cultural landmark designation: why we preserve what we preserve," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, pages 1-26.
    12. Jyh-Bang Jou & Tan (Charlene) Lee, 2009. "How Does a Development Moratorium Affect Development Timing Choices and Land Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 39(3), pages 301-315, October.
    13. Turnbull, Geoffrey K., 2004. "Urban growth controls: transitional dynamics of development fees and growth boundaries," Journal of Urban Economics, Elsevier, vol. 55(2), pages 215-237, March.
    14. Geoffrey Turnbull, 2005. "The Investment Incentive Effects of Land Use Regulations," The Journal of Real Estate Finance and Economics, Springer, vol. 31(4), pages 357-395, December.
    15. Carolyn A. Dehring, 2006. "Building Codes and Land Values in High Hazard Areas," Land Economics, University of Wisconsin Press, pages 513-528.
    16. Jou, Jyh-Bang, 2012. "Efficient growth boundaries in the presence of population externalities and stochastic rents," The Quarterly Review of Economics and Finance, Elsevier, vol. 52(4), pages 349-357.
    17. Pavlo Prokopovych, 2016. "Majorized correspondences and equilibrium existence in discontinuous games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(3), pages 541-552, March.

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