Efficient Urban Renewal Without Takings: Two Solutions to the Land Assembly Problem

摘要: When urban renewal projects require that smaller parcels be assembled into a single large one, owners who hold out for higher prices may either prevent or significantly delay socially efficient redevelopment. Local governments seeking private redevelopment currently have only the choice between hoping bargaining will lead to land assembly taking properties of these under eminent domain. We describe two mechanisms solve holdout problem and efficiency in without resorting governmental takings.