RAND has been instrumental in developing a line of research regarding terrorism. This collection of issue papers extends that research. Although the issue papers focus on California, the lessons are drawn from experience in various parts of the United States and from other countries, and they clearly have national implications. Each issue paper focuses on a different policy aspect. Three focus on the economy, including the effects of September 11 on the travel and tourism industry in California, on the U.S. airline industry in relation to the California economy, and on the possible limited availability of insurance on California’s economy. Others address California’s preparedness for attacks by weapons of mass destruction, access and control of dangerous biological materials, and California’s capabilities for coping with the psychological effects of terrorism. This collection of issue papers compellingly illustrates that there is work to be done to improve our understanding of terrorism’s longer-term effects, but that some of the consequences feared in the initial days and weeks after the attacks of September 11, 2001, are not likely to materialize. In both these regards, research will continue to play a vital role in shaping the development of appropriate long-term policy responses.