13 Pages Posted: 29 Jul 2010 Last revised: 24 Feb 2012
Date Written: July 28, 2010
This paper investigates government takings’ effect on entrepreneurship and the market process. We find that takings redirect the market process along new paths, generating “hidden” costs in the form of foregone entrepreneurial opportunities. Because standard cost-benefit calculations of takings usage can’t capture these costs, takings impact analyses systematically understate the cost of takings.
Keywords: Entrepreneurship, Market Process, Eminent Domain
JEL Classification: B53, L26
Suggested Citation: Suggested Citation