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Full-Text Articles in Insurance Law
In Praise Of (Some) Ex Post Regulation: A Response To Professor Galle, Kyle D. Logue
In Praise Of (Some) Ex Post Regulation: A Response To Professor Galle, Kyle D. Logue
Articles
According to modern law-and-economics (“L&E”) orthodoxy, the primary—maybe even the only—legitimate justification for government regulation is to correct a market failure. This conclusion is based on two key assumptions. First, when markets are functioning reasonably well, they are better at achieving efficiency than the government is. Second, most markets function reasonably well most of the time. Although there is probably evidence to support these assumptions (for example, the relative prosperity of market-based economies in comparison with the relative poverty of centrally planned economies), both assumptions are usually taken as articles of faith by mainstream L&E scholars. This is why scholarly …
The Perverse Effects Of Subsidized Weather Insurance, Omri Ben-Shahar, Kyle D. Logue
The Perverse Effects Of Subsidized Weather Insurance, Omri Ben-Shahar, Kyle D. Logue
Articles
This Article explores the role of insurance as a substitute for direct regulation of risks posed by severe weather. In pricing the risk of human activity along the predicted path of storms, insurance can provide incentives for efficient location decisions as well as for cost-justified mitigation efforts in building construction and infrastructure. Currently, however, much insurance for severe-weather risks is provided and heavily subsidized by the government. This Article demonstrates two primary distortions arising from the government’s dominance in these insurance markets. First, existing government subsidies are allocated differentially across households, resulting in a significant regressive redistribution favoring affluent homeowners …