Disastrous Anti-Economics and the Economics of Disasters
4 Pages Posted: 8 Jun 2010
This article surveys and synthesises some of the research on the political economy of natural disasters. While people tend to support government intervention to reduce prices or otherwise aid disaster recovery, research shows that government organisations are often corrupt and ineffective. Further, since people tend to mis-identify the causes of (for example) gasoline price increases after natural disasters, government intervention after a disaster is likely to do more harm than good.
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