There are three separate strands of literature in economics that are related to the efficiency of takings under eminent domain: one addresses the question of optimal compensation for properties that are taken, the second inquires how governments might learn the values of properties that they...

Incomplete markets do not provide accurate information about people's subjective valuations of goods. Knowledge of these subjective valuations is often important, however, for example when compensation payments for damaged or destroyed property are required. We argue that in such cases, an...

Transportation improvements tend to raise property values. But how do they affect the two components of property value, land and buildings? We develop a simple model to show that transportation improvements that raise the value of land generally lower the value of existing buildings. Our model...