input-output models for impact analysis suggestions for.pdf

Input-Output Models for Impact Analysis: Suggestions for Practitioners Using RIMS II Multipliers Rebecca Bess and Zoë O. Ambargis Presented at the 50th Southern Regional Science Association Conference March 23-27, 2011 New Orleans, Louisiana Rebecca Bess Zoë O. Ambargis U.S. Bureau of Economic Analysis U.S. Bureau of Economic Analysis 1441 L Street, NW 1441 L Street, NW Washington, DC 20230 Washington, DC 20230 Rebecca.Bess@bea.gov Zoe.Ambargis@bea.gov The views expressed in this paper are solely those of the authors and not necessarily those of the U.S. Bureau of Economic Analysis or the U.S. Department of Commerce. Input-Output Models for Impact Analysis: Suggestions for Practitioners Using RIMS II Multipliers Rebecca Bess and Zoë O. Ambargis Abstract: Input-output models, when applied correctly, can be powerful tools for estimating the economy-wide effects of an initial change in economic activity. To effectively use these models, analysts must collect detailed information about the project or program under study. Analysts also need to be aware of the assumptions and limitations of these models. In this paper, we will focus on these assumptions and on the information that is required to use regional input-output multipliers correctly. We focus specifically on multipliers generated by the Regional Input-Output Modeling System (RIMS II) developed by the Bureau of Economic Analysis. 1. Introduction This paper discusses the proper use of regional input-output (I-O) models. Th