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: