The Holdout Problem, Urban Sprawl, and Eminent Domain

22 Pages Posted: 19 Dec 2006  

Thomas J. Miceli

University of Connecticut - Department of Economics

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law

Date Written: November 2006

Abstract

Developers attempting land assembly often face a potential holdout problem that raises the cost of development. To minimize this extra cost, developers will prefer land whose ownership is less dispersed. This creates a bias toward development at the urban fringe where average lot sizes are larger, resulting in urban sprawl. This paper examines the link between the holdout problem and urban sprawl and discusses possible remedies, including the use of eminent domain for urban redevelopment.

Keywords: eminent domain, holdout problem, urban renewal, urban sprawl

JEL Classification: K11, R14, R52

Suggested Citation

Miceli, Thomas J. and Sirmans, C. F., The Holdout Problem, Urban Sprawl, and Eminent Domain (November 2006). Available at SSRN: https://ssrn.com/abstract=952511 or http://dx.doi.org/10.2139/ssrn.952511

Thomas J. Miceli (Contact Author)

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States
860-486-5810 (Phone)
860-486-4463 (Fax)

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law ( email )

Tallahasse, FL 32306
United States
850 644-4076 (Phone)

HOME PAGE: http://www.cob.fsu.edu/rmi

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