Governance and transaction costs in planning systems: a conceptual framework for institutional analysis of land-use planning and development control - the case of Israel
Er. Alexander, Governance and transaction costs in planning systems: a conceptual framework for institutional analysis of land-use planning and development control - the case of Israel, ENVIR PL-B, 28(5), 2001, pp. 755-776
Transaction cost theory (TCT), explaining economic institutions, applies to
the public sector too. TCT accounts for public land-use planning and devel
opment control, and suggests some alternative forms that governance of land
development and the property market could take. The basic elements of a co
nceptual model enabling the institutional analysis of land-use planning and
development control systems are: (1) an integrated TCT; (2) a transactions
-based representation of the land and real-estate development process; and
(3) a repertoire of alternative forms of governance, ranging from statutory
planning and regulation to contractual covenants. These elements are devel
oped for application in an institutional analysis of the Israeli statutory
planning system.