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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.

Suggested Citation

  • Christian Schubert, 2006. "Fairness in Urban Land Use: An Evolutionary Contribution to Law & Economics," Papers on Economics and Evolution 2005-22, Philipps University Marburg, Department of Geography.
  • Handle: RePEc:esi:evopap:2005-22
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    File URL: ftp://137.248.191.199/RePEc/esi/discussionpapers/2005-22.pdf
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    References listed on IDEAS

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    1. Claus Ott & Hans-Bernd Schõfer, 1994. "Entwicklung und Konstruktion effizienter Normen im Rechtssystem des deutschen Zivilrechts," Homo Oeconomicus, Institute of SocioEconomics, vol. 11, pages 293-329.
    2. Witt, Ulrich, 1996. "Innovations, Externalities and the Problem of Economic Progress," Public Choice, Springer, vol. 89(1-2), pages 113-130, October.
    3. Isaac Ehrlich & Richard A. Posner, 1974. "An Economic Analysis of Legal Rulemaking," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 257-286, January.
    4. Schlicht, Ekkehart, 1996. "Exploiting the Coase Mechanism: The Extortion Problem," Kyklos, Wiley Blackwell, vol. 49(3), pages 319-330.
    5. 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 377-377, September.
    6. 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.
    7. 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.
    8. 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 160-176, May.
    9. Lawrence Blume & Daniel L. Rubinfeld & Perry Shapiro, 1984. "The Taking of Land: When Should Compensation Be Paid?," The Quarterly Journal of Economics, Oxford University Press, vol. 99(1), pages 71-92.
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    11. Daniel W. Bromley, 1997. "Constitutional Political Economy: Property Claims In A Dynamic World," Contemporary Economic Policy, Western Economic Association International, vol. 15(4), pages 43-54, October.
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    More about this item

    Keywords

    externalities; takings; land use law; distributive fairness; procedural fairness;

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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