Case Study about Economics In Regulatory
Two classes of takings stem from the language of the Fifth Amendment of the Constitution: physical takings and regulatory takings. 1 Physical takings result from governmental condemnations, while regulatory takings often impose an inverse condemnation on a property owner. This article considers the role of economics in determining when property owners have been subject to a taking of property, and how they should be compensated for their economic loss. Government action that results in a physical taking of private property for public use requires just compensation for the loss of the property.
If the government entity does not make appropriate compensation, the property owner has the right to seek an inverse condemnation.2 The loss to the property owner is the fair market value of the property, including, if appropriate, the business goodwill value of a displaced business. In California, the just compensation guarantee of the constitution has been characterized as costspreading to socialize the burden where s ociety as a whole ought to foot the bill. Keep reading…
