Providing Incentives for Efficient Land Assembly

30 Pages Posted: 20 Sep 2007 Last revised: 21 Jun 2010

See all articles by Florenz Plassmann

Florenz Plassmann

SUNY at Binghamton, Department of Economics

T. Nicolaus Tideman

Virginia Polytechnic Institute & State University - Department of Economics

Date Written: April 13, 2010

Abstract

When urban renewal requires land assembly, owners who hold out may delay or prevent efficient redevelopment. Governments that use eminent domain to take such properties might cause socially inefficient redevelopment if they underestimate the values of these properties. None of the recent proposals for dealing with land assembly is fully efficient, and many fail to ensure that owners receive full compensation for their properties. We describe two mechanisms that yield efficient land assembly, and we assess their attractiveness relative to eminent domain and other, previously proposed solutions.

Keywords: land assembly, eminent domain, Clarke mechanism, self-assessment

JEL Classification: K11, R52

Suggested Citation

Plassmann, Florenz and Tideman, T. Nicolaus, Providing Incentives for Efficient Land Assembly (April 13, 2010). Available at SSRN: https://ssrn.com/abstract=1015820 or http://dx.doi.org/10.2139/ssrn.1015820

Florenz Plassmann (Contact Author)

SUNY at Binghamton, Department of Economics ( email )

Binghamton, NY 13902-6000
United States
607-777-4304 (Phone)

T. Nicolaus Tideman

Virginia Polytechnic Institute & State University - Department of Economics ( email )

3021 Pamplin Hall
Blacksburg, VA 24061
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
233
Abstract Views
1,083
rank
138,283
PlumX Metrics