Using the DEMATEL Method to Identify Impediments to the Process of Determining Compensation for Expropriated Properties

Anita Kwartnik-Pruc, Grzegorz Ginda and Anna Trembecka
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Anita Kwartnik-Pruc: Faculty of Mining Surveying and Environmental Engineering, AGH University of Science and Technology, 30-059 Cracow, Poland
Grzegorz Ginda: Faculty of Management, AGH University of Science and Technology, 30-067 Cracow, Poland
Anna Trembecka: Faculty of Mining Surveying and Environmental Engineering, AGH University of Science and Technology, 30-059 Cracow, Poland

Land, 2022, vol. 11, issue 5, 1-21

Abstract: Laws governing the expropriation of real properties for public and socially useful purposes are in force in most countries. The problem of determining fair compensation for expropriated land is a very current one and has already been the subject of research. However, it deals mainly with the method of determining the value of the property without analyzing the procedure itself, and its weakest points in particular. The research objective is to develop a methodology to identify those factors that impede the entire process the most and should be eliminated in the first place. For this purpose, the authors firstly analyzed the procedure for determining compensation for expropriated real properties in Poland and identified factors that may adversely affect this process. Then, the decision support methods were reviewed. Due to the maturity, flexibility, and comprehensively verified quality, the DEMATEL method was used to achieve the research objective. This method allows for the efficient identification of all cause–effect relationships as well as key factors even in the case of very complex systems. Since the DEMATEL method is based on expert knowledge, the authors prepared a questionnaire and asked 16 experts—representatives of public administration at various levels, judges, and property appraisers—to assess the effect of individual factors on each other on a five-point scale. Finally, they analyzed the nature of the factors disturbing the course of the process of determining compensation for expropriated real properties. Thanks to the original multilevel application of the DEMATEL method, which took into account expert knowledge about the complex relationships between the factors, the authors demonstrated that in Poland the key roles in hindering the compensation determination process play two factors: the undetermined legal status and incomplete identification of real estate constituents. The proposed methodology is a universal one and may also be applied for the assessment of other administrative proceedings as well as various factors that determine them.

Keywords: property; expropriation; compensation; DEMATEL method (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
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