US government natural disaster assistance: Historical analysis and a proposal for the future

Governments often provide grants or low-interest loans to disaster victims. Yet these programmes have proven to be quite costly. In addition, question s have been raised about associated behavioural incentives. Conceptually, g overnment disaster insurance programmes should be more efficient, consisten t and equitable than ex post facto disaster relief in the form of grants an d loans. Yet the performance of government disaster insurance programmes ha s been mixed, at best. This article reviews the history of US federal natur al disaster assistance to individuals and concludes with a recommendation f or a new government role in the provision of disaster insurance.