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Saturday, January 26, 2008

On Intentions, Incentives, and Consequences

There has been a spate of articles on the law of unintended consequences in the most popular econ blogs. Amidst all that, there was the news about California farmers planning to sell the water they get for irrigation.
Because farmers get their water at subsidized rates, some of them see financial opportunity this year in selling their allotments to Los Angeles and other desperately thirsty cities across Southern California, as well as to other farms.

Hmm. Could there by any more disconnect?

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