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Regulatory Takings and the Diminution of Value: An Empirical Analysis of Takings and Givings

Published online by Cambridge University Press:  28 April 2015

Marie K. Truesdell ,
John C. Bergstrom  and
Jeffrey H. Dorfman
Marie K. Truesdell
Affiliation:
Department of Business and Economics, Marian College, Indianapolis, IN
John C. Bergstrom
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
Jeffrey H. Dorfman
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
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Abstract

A hedonic model is used to measure the change in value of residential lots in Rockport, Texas, resulting from Section 404 of the U.S. Clean Water Act. Results show that average lot values initially decreased, went through a six-year adjustment period, and then stabilized on a higher price path resulting in a positive net effect on average lot values throughout the Rockport area (with the exception of a particular subdivision). The results indicate that Section 404 generated both regulatory “takings” and “givings,” suggesting that both effects should be considered when assessing the benefits and costs of regulatory events and compensation claims.

Keywords

Clean Water Act Section 404hedonic price methodinterrupted time seriesregulatory takings and givingswetlandsC51D61RHR21Q15
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 38 , Issue 3 , December 2006 , pp. 585 - 595
Copyright
Copyright © Southern Agricultural Economics Association 2006

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