Regionalization in the RIMS II ModelStanislaw Rzeznik

2018 AUBER ConferenceOctober 13-16, 2018

Overview

Presentation Overview

• The RIMS II model

• Regionalization

• Best practices

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RIMS II is asingle region

demand-drivenmodel

What is RIMS II

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What Multipliers Are Available

Summary Multipliers

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What Multipliers Are Available

Break-out Multipliers

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Regionalization

Regionalization Adjustments

• Local and non-local purchases• Commuting patterns• State wage rates• Taxes and savings

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Local Purchases

Regionalizing I-O Tables

• Assume locally-produced output is preferred

• Regionalizing indexes are applied to I-O dataHigher index = more self sufficient

• Regionalization provides an I-O table weighted to reflect local self-sufficiency

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Local Purchases

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Regionalization Indexes (LQs)

Local Purchases

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Leakages Reduce Potential Impacts

Commuting Patterns

Commuting Patterns Adjust for Residency

• Commuters living outside the region reduce local earnings and employment impacts

• Type II multipliers only include the induced impact of residence-adjusted worker spending

• Ideally, the region selected for an impact will match the regional commuter shed

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Wage and Tax Rates

Local Labor Markets

• State-level wage and tax rates

• National-level savings rates

• Assume labor (and other resources) are freely available at current wages (and prices)

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Know Your Model

Data Gaps

• Universal, periodic, consistent regional data are difficult and costly to collect

•Model users need to know how their model fills gaps in regional data

• Ask whether model results look reasonable

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Questions

Questions

Contact us at RIMS@BEA.GOV

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