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Takings

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bijayaho's version from 2017-04-30 01:55

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Why do we have eminent domain?
1) public goods – makes sense if you’re doing it for use by the general public
2) externalities – makes sense if you overcome negative costs w/ generation of positive externalities
3) assembly (dominant rationale) – gov’t needs to amass a large property but holdout problems prevent individual purchases. ED avoids high transaction costs imposed by assembly problems