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 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.
Research Area Leader: Scott Farrow