The terrorist attacks of September 11, 2001, present significant challenges for policymakers at all levels of government. Since terrorism seems to present particularly acute risks for core urban areas, it may influence economic and policy decisions in ways that affect the spatial distribution of population and economic activity. These impacts, however, will depend importantly on the assignment of responsibilities among Federal, state, and local governments for dealing with terrorism and on the distribution of the costs of these responsibilities. The policy interactions among different levels of government, and between the private and the public sectors, should provide students of political economy with much insight into the nature of the policy process in the American federation.
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Paper provided by EconWPA in its series Public Economics with number
0112005.
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