The contribution of costbenefit analysis in the evaluating the efficiency of land regulation of the Federal District

Abstract

This paper evaluates the efficiency of some of the articles of the “Plano Diretor do Ordenamento Territorial” (PDOT) of the Federal District, utilizing Law and Economics in order to understand them. Moreover, this study addresses the practical implications of such norms on the behavior of a city’s population, specifically in the context of public land policy. Furthermore, this research examines primordial legal concepts within this theme – particularly the Kaldor-Hicks criterion and the cost-benefit analysis. This paper concludes that the penalty imposed by this law does not influence the natural consequences of land negotiations. Additionally, this study also advocates for more incentives as a means to better these current economic exchanges and avoid possible damages caused by negligence. Ultimately, this study suggests some future legislative proposals in order to solve some of the studied legislative inconsistencies.