This issue grows even more pronounced in the wake a storm when uninsured homeowners are regularly supported with disaster relief. There is no judgment in these observations. The reader is simply reminded that part of being a civil society is to be socially generous. A critical aspect of good public policy is to limit such perversity in comparison to the benefits of being part of a civil society. Economists have traditionally focussed on capturing the social costs of feared outcomes and preventive policies.
Actual policy is, at least partially, in response to private costs of such incomes and policies.
We are exploring the relative importance of these two factors and developing new approaches in impact assessment more capable of reflecting the political economic pressures shaping public policy.