In 2008, Congress considered a plan to introduce taxpayer-financed insurance for individuals who live in hurricane zones.

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In 2008, Congress considered a plan to introduce taxpayer-financed insurance for individuals who live in hurricane zones. The program would have amounted to a subsidy of approximately $500 to each Floridian. Discuss how such a program might induce inefficient behavior. Incorporate the notion of moral hazard into your answer. DHF7

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Public Finance

ISBN: 9780071267885

9th International Edition

Authors: Harvey S Rosen, Ted Gayer

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