Beliefs, Bias, and Regime Uncertainty after Hurricane Katrina

Abstract:     
This essay explores the relationship between beliefs and economic policy in the context of gasoline prices after Hurricane Katrina. Evidence of "anti-market bias" is identified in polling data, press releases, and legislation, and it is argued that the uncertainty emanating from statutes restricting "price gouging" may reduce investment in the provision of "necessary goods and services" after natural disasters.

Accepted Paper Series