The Economic Costs and Consequences of Terrorism
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The Economic Costs and Consequences of Terrorism

9781847209740 Edward Elgar Publishing
Edited by Harry W. Richardson, Honorary Doctorate, Universidad Autonoma del Estado de Mexico, Peter Gordon, Professor, School of Policy, Planning and Development, University of Southern California, US and James E. Moore II, Professor, University of Southern California, US
Publication Date: 2008 ISBN: 978 1 84720 974 0 Extent: 360 pp
This landmark book covers a range of issues concerning the consequences of terrorist attacks. Beginning with a discussion of new policies and strategies, it then delves into specific areas of concern, modeling a range of possible scenarios and ways to mitigate or pre-empt damages.

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Critical Acclaim
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Contents
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This landmark book covers a range of issues concerning the consequences of terrorist attacks. Beginning with a discussion of new policies and strategies, it then delves into specific areas of concern, modeling a range of possible scenarios and ways to mitigate or pre-empt damages.

Top researchers from around the world discuss issues such as: airport security, urban terrorism, Coast Guard operations, and the need to balance freedoms with security. New policies for deterring terrorism are also proposed. Later chapters model the economic impacts of terrorist attacks on the food industry, major US ports, and US theme parks. The final chapters provide an in-depth look at the effects of interruptions to electricity supply and how to improve resiliency. Using specific locations and situations, the volume details in a concrete way the long and short-term economic effects of possible future attacks.

The cutting-edge research and provocative conclusions make this a must-read for policymakers, public sector economists, urban planners, aviation officials, insurance industry analysts and those charged with disaster management.
Critical Acclaim
‘This volume raises many important questions and is a valuable addition to the empirical literature on the economics of terrorism. Individuals charged with thinking about the design of appropriate counterterrorism and disaster management strategies will want to read this book. Highly recommended.’
– J.H. Turek, Choice
Contributors
Contributors: J. Apt, N.O. Bakir, M.P. Drennan, B.S. Frey, P. Gordon, S. Kim, H. Kunreuther, L.B. Lave, S.-Y. Liao, R.G. Little, S. Luechinger, E. Michel-Kerjan, H. Mohtadi, J.E. Moore II, G. Morgan, A.P. Murshid, G. Oladosu, Q. Pan, J. Park, L. Parkinson, R.W. Poole Jr., C.E. Restrepo, H.W. Richardson, A. Rose, R.E. Schuler, J.S. Simonoff, T.F. Stinson, L. Wang, R. Zimmerman
Contents
Contents:

Preface

PART I: INTRODUCTION
1. Introduction
Harry W. Richardson, Peter Gordon and James E. Moore II

PART II: GENERAL ISSUES
2. Terrorism: Considering New Policies
Bruno S. Frey and Simon Luechinger

3. An Empirical Analysis of the Terrorism Risk Insurance Act (TRIA)
Howard Kunreuther and Erwann Michel-Kerjan

PART III: SECURITY
4. Airport Security: Time for a New Model
Robert W. Poole, Jr.

5. Cost-effective Strategies to Address Urban Terrorism: A Risk Management Approach
Richard G. Little

6. Optimal Inspection Strategies for Coast Guard Operations
Niyazi Onur Bakir

7. Balancing Freedom and Security after 9/11: Risk Management at the National Park Service
Larry Parkinson

PART IV: MACROECONOMIC, SECTORAL AND SPATIAL IMPACTS
8. The National Economic Impacts of a Food Terrorism Event: Initial Estimates of Indirect Costs
Thomas F. Stinson

9. The Economic Cost of Disasters: Permanent or Ephemeral?
Matthew P. Drennan

10. Analyzing Catastrophic Terrorist Events with Applications to the Food Industry
Hamid Mohtadi and Antu Panini Murshid

11. Simulating the State-by-State Effects of Terrorist Attacks on Three Major US Ports: Applying NIEMO (National Interstate Economic Model)
Jiyoung Park, Peter Gordon, James E. Moore II, Harry W. Richardson and Lanlan Wang

12. Tourism and Terrorism: The National and Interregional Economic Impacts of Attacks on Major US Theme Parks
Harry W. Richardson, Peter Gordon, James E. Moore II, Soojung Kim, Jiyoung Park and Qisheng Pan

PART V: THE ELECTRIC POWER SECTOR
13. Worst-case Electricity Scenarios: The Benefits and Costs of Prevention
Lester B. Lave, Jay Apt and Granger Morgan

14. Risk and Economic Costs of a Terrorist Attack on the Electric System
Rae Zimmerman, Carlos E. Restrepo, Jeffrey S. Simonoff and Lester B. Lave

15. Regional Economic Impacts of a Terrorist Attack on the Water System of Los Angeles: A Computable General Disequilibrium Analysis
Adam Rose, Gbadebo Oladosu and Shu-Yi Liao

16. Two-sided Electricity Markets: Self-Healing Systems
Richard E. Schuler

Index
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