Regional Input-Output Modeling System (RIMS II)

Zoë O. AmbargisUnderstanding Regional Economic Data for Policy and

PlanningDallas, TX

September 8, 2006

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What is RIMS II?

Developed in the mid 1970’s Model incorporates the linkages among the

industries in a regional economy Provides five types of input-output

multipliers for any county or multi-county region

The multipliers are useful, baseline, order-of-magnitude estimates commonly used to analyze the impacts of economic development projects

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How Have RIMS II Multipliers Been Used?

Opening and closing military bases Tourist expenditures New energy facilities Construction of sports facilities New retail establishments New airports or port facilities Opening and closing manufacturing

plants University expenditures

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How Have RIMS II Multipliers Been Used?

Other8%

Health and Education

18%

Manufacturing4%

Travel, Tourism, and Entertainment

17%

Economic Development

28%

Transportation and Utilities

15%

Construction10%

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Who Uses RIMS II Multipliers?

Private Consulting

Firms48%

Other9%

Institutes, Universities, and Colleges

23%

Federal, State, and Local

Governments9%

Associations, Business

Groups, and Chambers of Commerce

11%

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RIMS II Multipliers

Multiplier Definition

Final-demand outputTotal industry output per $1 change in final demand

Final-demand earningsTotal industry earnings per $1 change in final demand

Final-demand employment

Total number of jobs per $1 million change in final demand

Direct-effect earningsTotal household earnings per $1 initial change in household earnings

Direct-effect employmentTotal number of jobs per initial change in jobs

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Questions to Ask

What is being studied? What is the affected region? Is there more than one phase? How long will the project take? What are the affected industries? What is the final-demand change? How large is the final-demand

change?

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Example 1: Investment in New Construction

Question: What is the total impact on a region of building a new sports facility?

What is the final-demand change? $100 million investment in new

construction

What is the affected region? Dallas-Fort Worth-Arlington, TX MSA

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Example 1: Total Impact of an Investment in New Construction

Impact of a $100 million investment in new construction

Output $249,430,000

Earnings $79,400,000

Employment 2,268

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Example 1: Total Output Impact of Investment in New

Construction

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Example 2: Sports Facility Operation

Question: What is the total impact on a region of sports facility operation?

Initial changes in earnings and employment

Earnings $15,000,000

Employment 680

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Example 2: Total Impact of Sports Facility Operation

Earnings and employment impacts

Earnings $27,480,000

Employment 1,274

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Example 2: Total Earnings Impact of Sports Facility Operation

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Example 2: Total Employment Impact of Sports Facility

Operation

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Important Considerations

Multipliers are best suited for estimating the impacts of changes that are small relative to the size of the region’s economy

Size of multiplier will vary from one industry to another and from one regional economy to another

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Multiplier Comparisons by Region

http://www.bea.gov/bea/regional/rims/

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Coming Soon… Web-based Ordering and

Delivery

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Contact Information

RIMS II Staff Zoë Ambargis Rebecca Bess Hope Franklin Molly Weller

Phone 202/ 606-5343 Fax 202/ 606-5321 E-mail RIMSREAD@bea.gov