Journal Article

Has September 11 affected New York City's growth potential?

Abstract: In addition to exacting a tremendous human toll, the September 11 attack on the World Trade Center caused billions of dollars in property damage and a temporary contraction in New York City's economy. This article explores the effect of these events on the longer run economic prospects for the city. For many years, growth in New York has taken the form of rising property prices, reflecting a steady transition from low- to high-paying jobs. During the 1990s, the city's expansion was built on several factors, including improving fiscal conditions, better public services, and shifting industrial and population structures that favored job and income growth. The study suggests that the effects of September 11 will not eliminate these advantages in the medium term; in fact, preliminary indications are that the city remains an attractive location for businesses as well as households. Nevertheless, New York City will face many challenges as it attempts to return to its pre-attack growth path.

Keywords: Terrorism; Federal Reserve District, 2nd; Economic conditions - New York (N.Y.); War - Economic aspects;

Status: Published in Special issue on the economic effects of September 11

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Economic Policy Review

Publication Date: 2002

Volume: 8

Issue: Nov

Pages: 81-96