Journal of Public Administration

TitleInstitutional Change of Current Assessed Land Value and Its Impact upon the Price for Eminent Domain
作者Simon Chien-Yuan Chen, Xiu-Zhen Li
作者說明Simon Chien-Yuan Chen, Associate Professor, Department of Land Management, Feng Chia University. email: cyuan@fcu.edu.tw.

Xiu-Zhen Li, Master, Department of Land Management, Feng Chia University.
摘要The eminent domain system in Taiwan has been transferred to market price basis since September 2012. This significant change means that the government-led Current Assessed Land Value (CALV) system, which has been implemented almost fifty years ago, was no longer the benchmark of compensation for eminent domain. However, during the transiting period of institution change, the new institution has to tackle all problems coming from new and old systems. Thus, the main purpose of this paper intends to explore what is the driving force behind the institutional change of CALV in the perspective of public choice theory, which will let us understand how the old problems were created and how correction might be made. Findings show that the main driving forces influencing the institution changes of CALV was from politicians and bureaucrats’ intervention as public choice suggests. Therefore, the CALV operated by political principle is incapable to keep pace with the fluctuation of marker price. The past institutional reforms of CALV trying to reduce the gap between market transaction prices not only never succeed but also created many unintended consequences. This consequence including the agriculture land and other counterparts were raised up their current assessedland value much more than other types of lands because these lands do not need to pay associated land tax. However, other lands where are located in high density urban area and new developing districts were not adjusted to shorten the gap between the market price. Therefore, these problems are due to the very different nature between political organization and market institution. The corrections for these old problems and new challenges are obviously based on how Market-Price basis Eminent Domain policy can create a system with less political influence but with more impartialness by adding more market practitioners.

Keywords: Current Assessed Land Value, Market-Price basis Eminent
Domain, New Institutional Economics, Public choice school,
Institutional change
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