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Homeland Security and the Private Sector
Title: Homeland Security and the Private Sector
Date: December 2004
Author: Douglas Holtz-Eakin
Institution: Congressional Budget Office
Bibliographic Entry: Holtz-Eakin, Douglas. 2004. Homeland Security and the Private Sector. Congressional Budget Office. Washington, D.C.
Electronic Link: http://www.cbo.gov/ftpdocs/60xx/doc6042/12-20-HomelandSecurity.pdf
Key Words: security efforts, private industry, vulnerabilities, losses, private sector, terrorist attack costs, private actions,
Summary of Key Points, Issues and Conclusions:
This paper examines issues surrounding enhanced security efforts by private industry. It describes the vulnerabilities and potential losses to both the private sector and the nation as a whole that would underlie the expected costs of terrorist attacks. It reviews the incentives for private actions to limit vulnerabilities and the existing government programs that address those incentives. The overall effect of current programs constitutes a “baseline” of incentives and institutions for protecting the nation, against which any new efforts can be assessed. Finally, the paper lists ideas in three broad groups for new approaches to prompt industries to do more to enhance security:
- those that would cause businesses to internalize more of the social costs of terrorist attacks;
- those that would have the government assume more of the direct responsibility for actions to reduce vulnerabilities and losses from attacks on industry;
- those that would improve information that might facilitate private actions.
Name of Researcher: Brian S. Carter
Institution: ICHS, TAMU
Date: October 3, 2005