publication . Report . Article . Preprint . 2004

An Empirical Analysis of the Economic Impact of Federal Terrorism Reinsurance

Jeffrey R. Brown; J.David Cummins; Christopher M. Lewis; Ran Wei;
Open Access
  • Published: 01 Mar 2004
  • Publisher: National Bureau of Economic Research
Abstract
This paper examines the role of the federal government in the market for terrorism reinsurance. We investigate the stock price response of affected industries to a sequence of thirteen events culminating in the enactment of the Terrorism Risk Insurance Act (TRIA) of 2002. In the industries most likely to be affected by TRIA banking, construction, insurance, real estate investment trusts, transportation, and public utilities the stock price effect was primarily negative. The Act was at best value-neutral for property-casualty insurers because it eliminated the option not to offer terrorism insurance. The negative response of the other industries may be attributab...
Subjects
free text keywords: Economic impact analysis, Terrorism, Event study, Reinsurance, Finance, business.industry, business, General insurance, Real estate investment trust, Macroeconomics, Economics, Casualty insurance, Terrorism Risk Insurance Act, jel:G14, jel:G22
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publication . Report . Article . Preprint . 2004

An Empirical Analysis of the Economic Impact of Federal Terrorism Reinsurance

Jeffrey R. Brown; J.David Cummins; Christopher M. Lewis; Ran Wei;