This presentation is part of: D70-1 Public Choice

Pass a Law, Any Law, Fast

Ed Lopez, Ph.D, Economics Department, San Jose State University, One Washington Square, San Jose, CA 95192

*Abstract:* The Supreme Court in *Kelo v. City of New London* left

protection of property against takings for economic development to the

states. Since *Kelo*, thirty-seven states have enacted legislation to update

their eminent domain laws. This paper is the first to theoretically and

empirically analyze the factors that influence whether, in what manner, and

how quickly states change their laws through new legislation. Fourteen of

the thirty-seven new laws offer only weak protections against development

takings. The legislative response to Kelo was responsive to measures of the

backlash but only in the binary decision whether to pass any new law. The

decision to enact a meaningful restriction was more a function of relevant

political economy measures. States with more economic freedom, greater value

of new housing construction, and less racial and income inequality are more

likely to have with stronger restrictions and sooner.