Government Takings: Determinants of Eminent Domain

Abstract

There is a well-documented link between institutions of secure property rights and economic development. The increasing use of eminent domain to transfer property from one private owner to another for private benefit, upheld in the Supreme Court's controversial Kelo decision, undermines the security of property rights. While previous research examines the effect of eminent domain use, this paper explores which factors explain varying levels of eminent domain use for private benefit across states. The author finds that corruption, election of state Supreme Courts, federalism, and economic freedom are important determinants of eminent domain use for private benefit.

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