September 11th, 2001: Immediate and short run effects on U. S. commodity markets, financial statistics, and macroeconomic variables

Abstract

In an attempt to identify and quantify the economic impacts of 9/11 on U.S. markets, this study individually examines a wide range of U.S. economic variables. Macroeconomic indicators, commodity prices, and financial statistics are the three main focuses of the project. Econometric analysis-ranging from simple ordinary least squares regression to more advanced techniques such as autoregressive conditional heteroscedastic models-is used to identify the various impacts. The analysis finds that September 11th did have a wide array of impacts on the U.S. economy. Some variables appear to have been affected both immediately and in the short run, while others seem to have experienced no direct impact. As a whole, this study finds that the effects of 9/11 were more limited in scope than others had initially proposed. In addition, those effects that were evident seem to be mostly short-lived in nature.

The results of this study provide a good beginning for the application of econometric analysis to events such as September 11th. There are many possibilities for future research, including both the addition of supplementary study variables and the use of alternative econometric techniques.

Date of Award	2007
Original language	American English
Awarding Institution	Eastern Illinois University
Supervisor	Noel Brodsky (Supervisor)