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Government’s response to Hurricane Katrina: A public ...

public Choice (2006)127:55 73 DOI: Springer 2006 government s response to Hurricane katrina : A public choiceanalysisRUSSELL S. SOBEL & PETER T. LEESOND epartment of Economics, West Virginia University, Morgantown, WV 26506-6025 (E-mail: use public choice theory to explain the failure of FEMA and other governmentalagencies to carry out effective disaster relief in the wake of Hurricane katrina . The areas inwhich we focus are: (1) the tragedy of the anti-commons resulting from layered bureaucracy,(2) a type-two error policy bias causing over cautiousness in decision making, (3) the politicalmanipulation of disaster declarations and relief aid to win votes, (4) the problem of acquiringtimely and accurate preference revelations, (5) glory seeking by government officials, and (6)the shortsightedness effect causing a bias in governmental decision : Flirting with Disaster As we are all aware, disasters are very political events. 1 These words couldhave easily come from a public choice scholar, but instead were spoken bythen-FEMA Director James Lee Witt when he testified before Congress aboutthe cause of persistent problems and corruption in government disaster man-agement back in 1996.)

56 and choices of these public sector agents in the wake of Hurricane Katrina can be understood by a careful examination of their incentives. In this paper we employ public choice theory to …

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