| Popis: |
Using daily observations of ridership on the New York City subway system from March 12, 2002 through October 31, 2005, this paper studies the effects that changes in the national terror alert level as set by the U.S. Department of Homeland Security has on consumer behavior in the subway system. Applied time-series intervention analysis shows that increasing the national terror alert level to high (color coded as orange) leads to a 4% decrease, both statistically and economically, in daily subway ridership in New York City. Furthermore, an increased national terror alert level decreases consumer surplus by as much as $1.80 million per day, approximately 3.3% of which is due to a decrease in subway ridership. |
