I guess the market failure would be one of capital markets not being able to respond fast enough and offering high interest loans to the poor and infirm in N.O. so that they could pay to evacuate within a day or two. Possibly, the market for information failed in that people in N.O. did not fully understand the expected cost of staying... or did they and they simply got bitten by being on the wrong end of an expected value calculation? Given the high cost of evacuating entire hospitals, I would have to say that both of the above contributed to the demand side of the non-evacuation disaster.
-Jeff >>> Alexander Guerrero <[EMAIL PROTECTED]> 9/6/2005 6:32 PM >>> It is necessary, at least too me, to get details of what you consider market failure in this case, assuming the hurricane of this class could be considered a 'public' good. Regards AG _____ From: ArmChair List [mailto:[EMAIL PROTECTED] On Behalf Of Michael Giesbrecht Sent: martes, 06 de septiembre de 2005 16:49 To: ARMCHAIR-L@mail04.GMU.EDU Subject: Katrina and the Evacuation of the Poor and Infirm: Market Failure? The government (local, State, and Federal) appropriated responsibility for the Mississippi River levy system, the drainage systems, the pumping systems, the road ways, and the bridges, but apparently, they left it to the market to provide the service of evacuating the poor and the infirm. Since they poor and infirm were not, to any great extent, evacuated, is this an example of market failure? Best regards, Michael Giesbrecht
