This paper examines the role of the social entrepreneur in post-Katrina recovery and presents implications for policy.

Major American companies from Marriott to McDonald’s to Wal-Mart undertook major and minor acts of bourgeois virtue and contributed in a significant way to the recovery from Hurricane Katrina. Doing the right thing” was central to their response. What constituted “doing the right thing,” how the very nature of large capitalist enterprises made doing “right” possible, and how doing “right” improved conditions after Katrina is explored in this working paper.

Despite having their plans frustrated through the regulations and uncertainty created by government action, humankind has still demonstrated a remarkable resilience following a natural or manmade disaster.  We argue that this is due to the civilizing and coordinating roles played by civil society.  For-profit companies, charities and churches play a vital role in the recovery process.  These organizations have proven to be the first, and most well equipped responders to disasters, jump starting the recovery process.

Critics have suggested that rising homeowners insurance costs in some areas since 2005’s Hurricane Katrina are due to market inefficiency or herding behavior by insurers This paper empirically tests the herding hypothesis and finds little evidence to support it. Uncertainty in regulation and public policy are likely the significant drivers of coastal rate hikes and decreased availability.