How did 9/11 Change the Economy?

Economics Happy Hour Podcast · Sep 10, 2026 · 52m

Twenty-five years after the September 11 attacks, we look at a difficult question: can economics help us understand terrorism? We start with Gary Becker’s rational model of crime and Alan Krueger's research to consider the incentives, opportunity costs, and motivations behind terrorist activity. From there, we consider whether 9/11 was a “small” or “large” economic shock, looking at everything from financial markets and travel to government spending, immigration, and consumer behavior.

In this episode, we talk about:

* Whether the rational-choice framework economists use to study crime can…