NCJ Number
199252
Date Published
May 2002
Length
40 pages
Annotation
This document discusses several key studies on the economic impact of the September 11, 2001, terrorist attacks on the World Trade Center buildings in New York City.
Abstract
Eight studies from seven different organizations were identified as being the most comprehensive studies available on the economic impact of the terrorist attacks. They are the New York City Office of the Comptroller, New York Governor and State Division of the Budget, New York City Partnership and Chamber of Commerce, Fiscal Policy Institute, New York State Senate Finance Committee, Milken Institute, and New York State Assembly Ways and Means Committee. Recent studies by the Federal Reserve Bank of New York and the New York City Independent Budget Office provided updated information on some of the economic impacts. In general, the studies reviewed varied in the extent to which they met standard economic criteria for analyzing economic impacts. The study by the New York City Partnership provided the most comprehensive estimates. These estimates were that the attacks on the two World Trade Center buildings cost about $83 billion (in 2001 dollars) in total losses, including both direct and indirect costs. About $67 billion of the losses would most likely be covered by insurance, Federal payments, or increased economic activity. Only three of the studies used a national or regional perspective in estimating the indirect costs or losses in personal and business income. The estimates of impact were based on preliminary information that is now, in some cases, dated. More recently, it has been indicated that the cleanup of the World Trade Center site has been quicker and cheaper than initially estimated. The estimate of losses are likely to continue to evolve as activities, such as cleanup and stabilization, are completed and as factors, such as long-term consequences on the health of the survivors, become known.