The World Trade Center attack underscored the urgent need to assess vulnerabilities in the security of American lives and property and to implement preventive measures against catastrophic events. As policy-makers grapple with homeland security challenges, a key issue they face is determining when private sector security activities or government interventions are most effective in promoting national security. We argue that in many private sector settings, a combination of regulations, insurance, and third party inspections offers the most auspicious approach to improving security at reasonable economic cost.
Kunreuther, Howard, Geoffrey Heal, and Peter Orszag. "Interdependent Security: Implications for Homeland Security Policy and Other Areas." Brookings Institute Policy Brief 108 (October 2002).
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