A developer buys several undeveloped parcels of land on a


A developer buys several undeveloped parcels of land on a beachfront. At a later date, the state passes a law greatly restricting coastal development.

When the developer's request for permission to develop is denied, he sues for compensation under the Fifth Amendment, claiming he was denied all beneficial use of the land. (See Palazollo v. Rhode Island, 121 S.Ct. 2448, 2001).

(a) How would you decide this case? What other cases would you cite?

(b) Would it matter whether the plaintiff had bought the land after enactment of the statute restricting development?

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Econometrics: A developer buys several undeveloped parcels of land on a
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