2 thoughts on “Why prices should be allowed to rise after a disaster”

  1. Posted 05/11/2012 at 17:00 | Permalink

    The post-Sandy call for price controls was so predictable that Steve really should have published this LAST week.

    Preferably in the New York Times.

  2. Posted 08/11/2012 at 15:00 | Permalink

    A very good example in support of this argument is in the paper “Roofs or Ceilings? The Current Housing Problem” by Friedman and Stigler (1946), available online at http://www.fee.org/library/books/roofs-or-ceilings-the-current-housing-problem/. They describe how, following the 1906 San Francisco earthquake, a free market in rents avoided a housing shortage despite loss of half the city’s housing.

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