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Public Use or Abuse? The Use of Eminent Domain for Economic Development in the Era of \textit{Kelo}

  • Moussa Diop

    (Pennsylvania State University)

  • Steven P. Lanza

    (University of Connecticut)

  • Thomas J. Miceli

    (University of Connecticut)

  • C. F. Sirmans

    (Florida State University)

The Supreme Court decision in Kelo v. New London (2005) authorized the use of eminent domain for economic redevelopment projects provided that there are sufficient spillover benefits to the public in the form of enhanced taxes and new jobs. This paper examines the economic basis for this decision, and tests the conclusions using cross-state data on economic development takings. It also examines the factors underlying the political actions by states to limit such takings following the Kelo decision. The results are consistent with the economic justification for eminent domain as a means of overcoming holdout problems associated with land assembly.

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Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2010-28.

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Length: 35 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:uct:uconnp:2010-28
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