Indiana Law Review Indiana Law Review Collection ^ a Volume 36 No. 2 2003 SYMPOSIUM THE LAW AND ECONOMICS OF PROVIDING COMPENSATION FOR HARM CAUSED BY TERRORISM Conference sponsored by The John M. Olin Program in Law and Economics Georgetown University Law Center April 2002 Introduction to the Symposium Warren F. Schwartz Compensation for Victims of Terror: A Specialized Jurisprudence of Injury Marshall S. Shapo A Pig in a Python: How the Charitable Response to September 1 1 Overwhelmed the Law of Disaster Relief Robert A. Katz Providing Compensation for Harm Caused by Terrorism: Lessons Learned in the Israeli Experience Hillel Sommer The Economics of Post-September 1 1 Financial Aid to Airlines Margaret M. Blair Exclusion of Terrorist-Related Harms from Insurance Coverage: Do the Costs Justify the Benefits? Jeffrey E. Thomas Income Tax as Implicit Insurance Against Losses from Terrorism ' Terrence Chorvat Elizabeth Chorvat Terrorism and Insurance Markets: A Role for the Government as Insurer? Anne Gron Alan O. Sykes Raise the Bar BNA's United States Law Week For 65 years, U.S. Law Week has consistently raised the standard of excellence in legal reporting. Today's Law Week is a powerful research and notification tool that does more for you than ever: • Case Alert: A summary and analysis of the most significant court opinions nationwide, with electronic access to full text. • Legal News: Reports on non- judicial developments, including legal analysis and perspective, important legislation, and administrative rulemakings. • Supreme Court Today: Daily coverage of the status of every case before the U.S. Supreme Court and all Court proceedings. • Supreme Court Opinions: Full text of decisions, with headnotes and counsel listings, daily online, weekly in print. 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Grove, Associate Dean for Graduate Studies, Professor ofLaw, and Director, ChinaSummerProgram. A.B., Juniata College; J.D., George Washington University. Susanah M. Mead, Associate Deanfor Academic Affairs and Professor ofLaw. B.A., Smith College; J.D., Indiana University—-Indianapolis. Cynthia Baker, Director, Program on Law and State Government. B.A., J.D., Valparaiso University. Elizabeth L. DeCOUX, Assistant Deanfor Student Affairs. J.D., Mississippi College School of Law. Angela M. EspaS)A, Assistant Deanfor Admissions. J.D., Indiana University—Bloomington. JONNA Kane MacDougall, Assistant Dean for External Affairs. J.D., Indiana University — Indianapolis. Carol B. Neary, Director ofDevelopment. B.A., Indiana University—Indianapolis. Shannon L. Williams, Director of Professional Development. B.S., Indiana University — Indianapolis. Faculty Cynthia M. Adams, Clinical Associate Professor ofLaw. B.A., Kentucky Wesleyan College; J.D., Indiana University—Indianapolis. Thomas B. Allington, Associate Dean for Technology and Professor ofLaw. B.S., J.D., University of Nebraska; LL.M., New York University. James F. Bailey, III, Professor ofLaw and Director ofLaw Library. A.B., J.D., M.A.L.S., University of Michigan. GERALDL.BEPKOjnterim President, Indiana University andProfessor ofLaw. B.S., Northern Illinois University; J.D., ITT/Chicago-Kent College ofLaw; LL.M., Yale University. Frank Bowman, Associate Professor of Law. B.A., Colorado College; J.D., Harvard Law School. William C. Bradford, Assistant Professor ofLaw. B.A., M.A., University of Miami; Ph.D., Northwestern University; J.D., University ofMiami School ofLaw; LL.M., Harvard Law School. Robert Brookins, Professor ofLaw. B.S., University of South Florida; J.D., Ph.D., Cornell University. Daniel H. Cole, M Dale Palmer Professor of Law. A.B., Occidental College; A.M., University of Chicago; J.D., Lewis and Clark College; J.S.M., J.S.D., Stanford Law School. Jeffrey 0. Cooper, Associate Professor ofLaw. A.B., Harvard University; J.D., University of Pennsylvania. Paul N. Cox, Centennial Professor ofLaw. B.S., Utah State University; J.D., University of Utah; LL.M., University of Virginia. Robin Kundis Craig, Associate Professor ofLaw. B.A., Pomona College; M.A., The Johns Hopkins University; Ph.D., University of California; J.D., Lewis and Clark School of Law. KennethD. Crews,Associate Dean ofthe Facultiesfor Copyright ManagementandProfessor ofLaw and Library and Information Science. B.A., Northwestern University; J.D., Washington University; M.L.S., University of California, Los Angeles; Ph.D., University of California, Los Angeles. James D. Dimitri, Clinical Associate Professor of Law. B.S., Indiana University; J.D., Valparaiso University School of Law. Jennifer Ann Drobac, Associate Professor ofLaw. B.A., M.A., Stanford University; J.D., J.S.D., Stanford Law School. George E. Edwards, Associate Professor of Law and Director, Program in International Human Rights Law. B.A., North Carolina State University; J.D., Harvard Law School. Nicholas Georgakopoulos, Professor ofLaw. Ptyhion Nomikis, Athens University School of Law; LL.M., S.J.D., Harvard Law School. Jeffrey V^. Grove, Associate Dean, Professor ofLaw, andDirector, China Summer Program. A.B., Juniata College; J.D., George Washington University. Frances Watson Hardy, Clinical Associate Professor ofLaw. B.S., Ball State University; J.D., Indiana University—Indianapolis. Lawrence A. JegEN, III, Thomas F. Sheehan Professor ofTax Law and Policy. A.B., Beloit College; J.D., M.B.A., The University of Michigan; LL.M., New York University. Henry C. Karlson, Professor ofLaw. A.B., J.D., LL.M., University of Illinois. Robert a. Katz, Associate Professor of Law. A.B., Harvard College; J.D., University of Chicago Law School. Linda Kelly-Hill, Professor ofLaw. B.A., J.D., University of Virginia. Eleanor D. Kinney, Samuel R. Rosen Professor ofLaw and Co-Director ofthe Centerfor Law and Health. B.A., Duke University; M.A., University of Chicago; J.D., Duke University; M.P.H., University of North Carolina. Andrew R. Klein, Professor ofLaw. B.A., University of Wisconsin; J.D., Emory University School of Law. Robert E. Lancaster, Clinical Associate Professor ofLaw. B.A., Millsaps College; J.D., Tulane Law School. Norman Lefstein, Professor ofLaw andDean Emeritus. LL.B., University ofIllinois; LL.M., Georgetown University. Maria Pabon Lopez, Assistant Professor ofLaw. B.A., Princeton University; J.D., University of Pennsylvania Law School. GerardN. Magliocca, Assistant Professor ofLaw. B.A., Stanford University; J.D., Yale Law School. DeborahMcGregor, Lecturer in Law andAssistant Director ofLegalAnalysis, Research and Communication. B.A., University of Evansville; J.D., Georgetown University. SUSANAH M. Mead, Associate Dean and Professor ofLaw. B.A., Smith College; J.D., Indiana University—Indianapolis. Mary H. Mitchell, Professor ofLaw. A.B., Butler University; J.D., Cornell Law School. James P. Nehf, Cleon H. Foust Fellow, Professor of Law, and Director, European Law Program. B.A., Knox College; J.D., University of North Carolina. David Orentlicher, Samuel R. Rosen Professor ofLaw and Co-Director ofthe Centerfor Law and Health. A.B., Brandeis University; J.D., M.D., Harvard College. Joanne Orr, Clinical Associate Professor of Law. B.S., Indiana State University; J.D., California Western. H. Kathleen Patchel, Associate Professor of Law. A.B., Huntington College; J.D., University of North Carolina; LL.M., Yale University. Florence Wagman Roisman, Paul Beam Fellow and Professor ofLaw. B.A., University of Connecticut; LL.B., Harvard Law School. Joan M. Ruhtenberg, Clinical Professor ofLaw and Director ofLegal Analysis, Research and Communication. B.A., Mississippi University for Women; J.D., Indiana University—Indianapolis. Joel M. SCHUMM, Clinical Assistant Professor ofLaw. B.A., Ohio Wesleyan University; M.A., University of Cincinnati; J.D., Indiana University School of Law— Indianapolis. Anthony A. Tarr, Dean and Professor ofLaw. B.A., LL.B., University of Natal; LL.M., Cambridge University; Ph.D., University of Canterbury; Ph.D., Cambridge University. James W. Torke, Carl M. Gray Professor ofLaw. B.S., J.D., University of Wisconsin. Lawrence P. Wilkins, Professor of Law. B.A., The Ohio State University; J.D., Capital University Law School; LL.M., University of Texas. Lloyd T. Wilson, Jr., Associate Professor of Law. B.A., Wabash College; M.A., Duke University; J.D., Indiana University—^Bloomington. Mary T. Wolf, Clinical Professor ofLaw and Director ofClinical Programs. B.A., Saint Xavier College; J.D., University of Iowa. R. George Wright, Professor ofLaw. A.B., University ofVirginia; Ph.D., Indiana University; J.D., Indiana University School of Law—Indianapolis. Emeriti Edward P. Archer, Professor ofLaw Emeritus. B.M.E., Renesselaer Polytechnic Institute; J.D., LL.M., Georgetown University. Agnes P. Barrett, Associate Professor ofLaw Emerita. B.S., J.D., Indiana University. Clyde Harrison Crockett, Professor of Law Emeritus. A.B., J.D., University of Texas; LL.M., University of London (The London School of Economics and Political Science). Debra a. Falender, Professor ofLaw Emerita. A.B., Mount Holyoke College; J.D., Indiana University—Indianapolis. CleoN H. Foust, Professor of Law Emeritus. A.B., Wabash College; J.D., University of Arizona. David A. Funk, Professor ofLaw Emeritus. A.B., College of Wooster; J.D., Case Western Reserve University; M.A., The Ohio State University; LL.M., Case Western Reserve University; LL.M., Columbia University. Paul J. Galanti, Professor of Law Emeritus. A.B., Bowdoin College; J.D., University of Chicago. Helen P. Garfield, Professor of Law Emerita. B.S.J., Northwestern University; J.D., University of Colorado. Harold Greenberg, Professor ofLaw Emeritus. A.B., Temple University; J.D., University of Pennsylvania. William F. Harvey, Carl M. Gray Professor ofLaw & Advocacy Emeritus. A.B., University of Missouri; J.D., LL.M., Georgetown University. W. WilliamHodes, Professor ofLaw Emeritus, A.B., Harvard College; J.D., Rutgers, Newark. William Andrew Kerr, Professor of Law Emeritus. A.B., West University; J.D., LL.M., Harvard University; B.S., Duke University. William E. Marsh, Professor ofLaw Emeritus. B.S., J.D., University of Nebraska. Ronald W. Polston, Professor ofLaw Emeritus. B.S., Eastern Illinois University; LL.B., University of Illinois. Kenneth M. Stroud, Professor of Law Emeritus. A.B., J.D., Indiana University — Bloomington. James Patrick White, Professor ofLaw Emeritus. A.B., University of Iowa; J.D., LL.M., George Washington University. Law Library Faculty James F. Bailey, III, Professor andDirector ofLaw Library. A.B., J.D„ M.A.L.S., University of Michigan. MaryHudson, Reference/Circulation Librarian. B.A., Ball State; M.L.S., Indiana University. Richard Humphrey, Reference Librarian. A.A., Brewton-Parker Junior College; B.A., Georgia Southwestern College; M.L.S., University of Kentucky. Wendell E. Johnting, Assistant Director for Technical Services. A.B., Taylor University; M.L.S., Indiana University. ChrisE.Long, CatalogLibrarian. B.A., Indiana University; M.A., Indiana University; M.L.S., Indiana University. MahnazK. y[osv{VEGV{,Acquisition/Serials Librarian. B.A., National University ofIran; M.S., Tehran University; M.A., Ball State University; M.L.S., Ph.D., Indiana University. MiriamA. Mwt^WY, Associate Director ofLaw Library, B.A., Purdue University; J.D., M.L.S., Indiana University—^Bloomington. KiYOSHi Otsu, Computer System Specialist. A.A., Parkland College; A.B., M.S., C.A.S., University of Illinois.