An economic analysis of takings in Korea: Endogenous probability and announcement effects

Joonmo Cho, Iljoong Kim

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

This paper analyzes a taking project which has recently come to the fore of public attention in Korea. Hypotheses as to why some ostensibly unreasonable incidents have occurred during this project will be presented. Also, starting with a general government incentive to maximize the discretionary budget, a theoretical reasoning will be developed to formally establish the hypotheses. The major features of taking focused on are the endogeneity of the takings probability and the government's opportunistic use of announcement effects. The paper seeks to explain various phenomena that tend to emerge when the compensation rule and taking procedure are superficially established, thereby fostering a political game whereby the resident's resistance deviates the taking probability from the efficient one.

Original languageEnglish
Pages (from-to)331-346
Number of pages16
JournalInternational Review of Law and Economics
Volume22
Issue number3
DOIs
StatePublished - Sep 2002
Externally publishedYes

Keywords

  • Announcement effect
  • Discretionary budget
  • Due process
  • Endogenous taking probability
  • Opportunism
  • Takings

Fingerprint

Dive into the research topics of 'An economic analysis of takings in Korea: Endogenous probability and announcement effects'. Together they form a unique fingerprint.

Cite this