544 the federal government provides disaster

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5.44The Federal Government provides disaster insurance that helps people to buildvacation homes in places subject to flooding, such as sand dunes. Assume thegovernment wants to protect the environment by preventing construction of homeson a specific sand dune near the ocean. If the government takes private property onthe sand dune, either by condemning it or by imposing regulations that forbid anyconstruction, should compensation include or exclude the increase in the value of theland caused by government flood insurance?
Article:Boomer vs Atlantic Cementa)Is the externality in Boomer private or public?
b)Are the transaction costs of bargaining among the parties low or high?
c)Suppose the households had a right to order the cement company to stop polluting.What obstacles would the cement company face if it tried to purchase the right toproduce from the households?
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Term
Summer
Professor
N/A
Tags
Economics, Law, fair market value

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