The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
The attack on the World Trade Center had an enormous financial, as well as emotional, impact on New York City. This article measures the short-term economic effects on the city’s labor force and capital stock through June 2002, the end of the recovery process at the World Trade Center site. Using a lifetime-earnings loss concept, the authors estimate that the nearly 3,000 workers killed in the attack lost $7.8billion in prospective income. Moreover, the employment impact in the key affected sectorssuch as finance, air transportation, hotels, and restaurantstranslated into an estimated earnings shortfall of $3.6billion to $6.4billion, while the cost of repairing and replacing the damaged physical capital stock and infrastructure totaled an estimated $21.6billion. Accordingly, the authors determine that the total attack-related cost to NewYorkCity through June 2002 was between $33billion and $36billion. The article also examines the attack’s effects on the city’s most economically vulnerable residents and analyzes survey findings on the incidence of post-traumatic stress disorder and alcohol and drug use after September11.