The Macroeconomic Effects Of 9/11

Abstract

There has been an extensive discussion on the effects of the September 11 terrorist attacks. The economic literature on this issue appears to be unsatisfactory. In particular it shows three main shortcomings: it provides very different estimations of the costs, does not consider properly the macroeconomic implications, and it is fragmentary. The scope of this paper is to address some of these shortcomings. For this purpose, we will discuss the economic costs of the attacks and will provide a theoretical framework to illustrate and explain its macroeconomic effects.