Regional Input-Output Modeling System

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Regional Input-Output Modeling System (RIMS II)
Regional input-output multipliers such as the RIMS II multipliers attempt to estimate how much a one-time or sustained increase in economic activity in a particular region will be supplied by industries located in the region. RIMS II multipliers differ from macro-economic multipliers used to assess the effects of fiscal stimulus on gross national product. Differences in industry-specific regional multipliers are not meaningful or appropriate for use in a national context.

RIMS II multipliers have been used by both the public and private sectors. There are numerous examples of their use:

  • Federal Government agencies have used the multipliers to study the local impact of government regulation on specific industries and to assess the local economic impacts of Federal actions such as military base closings.
  • State and local governments have used the multipliers to estimate the regional economic impacts of government policies and projects and of events, such as firms locating within their state, or to assess the impacts of tourism.
  • Businesses and private consultants have used the multipliers to estimate the economic impacts of a wide range of projects, such as building a new sports facility or expanding an airport; of natural disasters, such as Hurricane Katrina; or of special events, such as national political conventions.

RIMS II provides six types of multipliers: final-demand multipliers for output, earnings, employment, and value added; and direct-effect multipliers for earnings and employment.[1]

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