Terrorist acts can have extensive negative consequences, beginning with death and injury, property damage, and ordinary direct business interruption. However, negative impacts can be magnified greatly by a combination of ordinary multiplier effects, cascading infrastructure system failures, and behavioral responses stemming from fear. At the same time, extensive resilience exists at all levels--individual households and businesses, markets, supply chains, and the economies of regions and the nation as a whole. CREATE researchers are making further conceptual and empirical advances in developing a comprehensive consequence analysis framework. CREATE embeds this cost analysis in the broader risk-based framework, including the impact of behavioral economics, and further integrate its efforts by providing the estimates of benefits and costs related to risk management applications.
This research theme is co-led by Adam Rose and Howard Kunreuther, and the contributing investigators include: