This paper investigates government takings’ effect on entrepreneurship and the market process. We find that takings redirect the market process along new paths, generating “hidden” costs in the form of foregone entrepreneurial opportunities. Because standard cost-benefit calculations of takings usage can’t capture these costs, takings impact analyses systematically understate the cost of takings.
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Citation (Chicago Style)
Boettke, Peter J., Coyne, Christopher J. and Leeson, Peter T., Takings (July 28, 2010). Georgetown Journal of Law & Public Policy, Forthcoming.