Do restrictions on eminent domain harm economic development?
After the U.S. Supreme Court upheld in the Kelo decision the use of eminent domain for private-to-private transfer of property for economic development, public outrage was followed by attempts to restrict such use of eminent domain. Opponents of restrictions predicted dire consequences for state and local economies. This study considers whether restricting the use of eminent domain for economic development results in negative economic effects. The authors examine economic indicators before and after legislative or judicial restrictions on eminent domain across all states and between states based on the type of legislative/judicial change. Results indicate that there appear to be no negative economic consequences resulting from limiting the use of eminent domain when examining economic indicators before and after legislative/judicial change. Adopting either moderate or major eminent domain restrictions appears to create no economic ill effects when analyzing differences in trends based on the type of legislation passed or scope of judicial decision.
Related Cases

Economic Liberty | Eminent Domain | Private Property
Family-Owned Hardware Store Sues Long Island Town Trying to Take Away their Property
The Brinkmann family owns a chain of hardware stores in Long Island and purchased property with the hope of opening a new store. The town now wants to take the land through eminent domain, simply…

Eminent Domain | Private Property
Institute for Justice Asks U.S. Supreme Court to End Colorado Law Permitting Neighbors to Engage in Eminent Domain Abuse
Imagine if two of your neighbors got together, claimed they established a new town, and then “voted” to take your property from you using eminent domain. Crazy, right? Not in Colorado, where the owners of…

Eminent Domain | Private Property
Pipelines & Eminent Domain: Take Now, Pay (Much) Later
A pipeline company abused eminent domain to take property from the Erbs without paying them for the taking. IJ petitioned the Supreme Court to take the Erbs’ case, but unfortunately the court declined to hear…