Researchers with the Mid-America Earthquake (MAE)
Center (EEC 09701785), headquartered at the University
of Illinois, Urbana-Champaign, have developed a model
for assessing the economic losses in various regions
of the country due to reductions in transportation network
capabilities if a catastrophic earthquake occurs in the
New Madrid Seismic Zone (NMSZ). The integrated model
of transportation and economic activities developed by
Professors Tschangho John Kim, David Boyce of UIUC and
Geoffrey Hewings and Dr. Heejoo Ham of the University
of Illinois, Chicago is based on the pioneering work
by Leontief, a Nobel Prize winner, and Straus. Prior
to the work of this team, the Leontief-Straus model had
never been implemented because a solution algorithm had
never been developed. Using the new methodology to estimate
potential losses in the NMSZ, one scenario shows these
losses to be $49.7 billion in commodity flows. |