DANGEROUS LIAISONS: FEMA, Moral Hazards & Dangerous Decisions to Set up Home or Shop in Dangerous Places
Professor Kochan has put together this timely panel discussion on federal and private insurance and unsafe places. The panelists include a former City Attorney who is now consulting on landslides, Tim Canova; Henry Butler from across the street in Bus/Econ; Marc Maister a partner at Irell & Manella, Bob Burnham, Community Recovery Coordinator for Laguna Beach, CA; and Denis Binder as Moderator. Professor Kochan and The Federalist Society Lawyers Division President will be giving introductory remarks.
Fundamentally, the question for this panel will be whether public and/or private insurance markets tend to encourage locating homes or businesses in high-risk areas. Does the public safety net of the Federal Emergency Management Agency create a moral hazard – i.e. allow individuals to place their homes or businesses in naturally unsafe areas without fear that they will eventually need to internalize the costs of their location decisions because someone will be there to bail them out if things go wrong. Does the existence of a federal bailout regime skew investment decisions?
As an alternative argument, is there a social responsibility to provide protection for harmed individuals regardless of their location? The entire country has profited from such risky developments, has it not? As the country braces to confront each natural disaster, including the recent one in New Orleans, it is imperative that we analyze how the law should be structured to reflect properly the economic realities and incentives involved in locating properties when known risks exist. This panel will provide an in-depth view of the issues involved.
WHAT: Dangerous Liaisons Panel Discussion
WHERE: Room 237A/B
WHEN: October 18, 7pm
Fundamentally, the question for this panel will be whether public and/or private insurance markets tend to encourage locating homes or businesses in high-risk areas. Does the public safety net of the Federal Emergency Management Agency create a moral hazard – i.e. allow individuals to place their homes or businesses in naturally unsafe areas without fear that they will eventually need to internalize the costs of their location decisions because someone will be there to bail them out if things go wrong. Does the existence of a federal bailout regime skew investment decisions?
As an alternative argument, is there a social responsibility to provide protection for harmed individuals regardless of their location? The entire country has profited from such risky developments, has it not? As the country braces to confront each natural disaster, including the recent one in New Orleans, it is imperative that we analyze how the law should be structured to reflect properly the economic realities and incentives involved in locating properties when known risks exist. This panel will provide an in-depth view of the issues involved.
WHAT: Dangerous Liaisons Panel Discussion
WHERE: Room 237A/B
WHEN: October 18, 7pm
posted by Fern @ Life on the Balcony at 1:00 PM
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