Regional economic models can serve as valuable tools for corporate and regional planners by providing information and forecasts of economic conditions at the local level. Since every region is unique in its industrial makeup and general economic environment, specific effort in examining the local economy as an economic engine of its own can prove rewarding. Often, economic conditions and trends seen at the national level are quite different from the experiences of individual regions. Hence, valuable information can be gained by taking a grass roots regional approach to economic analysis.
REAL’s primary modeling efforts are focused on the construction and use of Regional Econometric Input/Output Models (REIMs). Each REIM is constructed from the ground up, using information as detailed as plant level purchases and sales. Since completion of REAL’s first model, the Chicago Region Econometric Input/Output Model (CREIM), in 1989, REAL has continually updated and refined collection and estimation techniques to maximize the informational content of each model while maintaining a high degree of accessibility.
The REIMs designed by REAL are structured to serve a wide range of user’s specific economic planning and analysis needs. Common uses of these REIMs by our clients include:
Impact analysis: estimating the effects of specific economic events on local industries.
Market analysis: evaluate market structure and dynamics by analyzing the purchases and sales of goods between industries over time.
Efficiency comparisons: compare specific business attributes, such as purchases and labor costs, to industry averages.
Economic analysis: examine general economic trends for the local economy
REAL’s portfolio of economic models covers regions throughout the Midwest, the eastern United States and the world. Currently, there are models completed or under construction for the following regions:
|US States||US Metropolitan Regions||International|
|Indiana||St. Louis||Ceará, Brazil*|
|Iowa||Washington D.C.||Minas Gerais, Brazil|
|Michigan||Northern Virginia||Sâo Paulo, Brazil|
If you are interested in renting or purchasing one or more of the models listed above, or wish to inquire about the construction of a model for a region not listed, please contact REAL.
Each model is packaged within a custom-designed windows based software. The software itself is specifically designed to allow users easy access to all facets of the REIM. At the click of the mouse, access can be gained to economic analysis information for your region.
For most US models, each industry within an economy is assigned to one of the 53 core business sectors defined by REAL. Sector definitions are roughly based on the two-digit level of the Standard Industrial Classification (SIC) code system. For each sector, historical and forecasted values are available for output, employment, and income. Additionally, yearly, on a sector by sector basis, volume estimates of purchases and sales between each sector is available for structural and efficiency analysis. Upon request, custom sectoring schemes can be provided. The industries defined within each US REIM are as follows:
|1||Livestock, Livestock Products, and Agricultural Products||01-02|
|2||Agriculture, Forestry and Fisheries||07-09|
|5||Food and Kindred Products||20|
|7||Apparel and Textile Products||22-23|
|8||Lumber and Wood Products||24|
|9||Furniture and Fixtures||25|
|10||Paper and Allied Products||26|
|11||Printing and Publishing||27|
|12||Chemicals and Allied Products||28|
|13||Petroleum and Coal Products||29|
|14||Rubber and Miscellaneous Plastics Products||30|
|15||Leather and Leather Products||31|
|16||Stone, Clay, and Glass Products||32|
|17||Primary Metals Industries||33|
|18||Fabricated Metal Products||34|
|19||Industrial Machinery and Equipment||35|
|20||Electronic and Other Electric Equipment||36|
|22||Instruments and Related Products||38|
|23||Miscellaneous Manufacturing Industries||39|
|24||Railroad Transportation and Transportation Services||40, 47|
|25||Local and Interurban Passenger Transit||41|
|26||Trucking and Warehousing||42|
|28||Transportation by Air||45|
|29||Pipelines, except Natural Gas||46|
|31||Electric, Gas, and Sanitary Services||49|
|33||Retail Trade||52-57, 59|
|34||Banking and Other Credit Agencies||60-61, 67|
|35||Security and Commodity Brokers||62|
|37||Insurance Agents, Brokers, and Service||64|
|39||Eating and Drinking Places||58|
|40||Hotels and Other Lodging Places||70|
|42||Business, Engineering, and Management Services||73, 87, 89|
|43||Auto Repair, Services, and Parking||75|
|44||Miscellaneous Repair Services||76|
|46||Amusement and Recreation Services||79|
|51||Membership Organizations and Household Services||84, 86, 88|
|52||Federal Government Enterprises|
|53||State and Local Government Enterprises|
In addition to the output, employment, and income information on these 53 industrial sectors, each REIM contains information on roughly 13 final demand variables, including consumption, investment, and government expenditures, and 8 demographic variables defining major age and sex cohorts and migration.