1. what does REMI say? sm Understanding the Sustainability of Jobs from Federal Spending Presented by REMI Frederick Treyz, CEO Rod Motamedi, Associate Economist

2. what does REMI say? sm Overview Introduction Example issues Simulation

3. what does REMI say? sm Patterns of Government Spending Providing public goods Borrowing to fund large investment projects – Canals, dams, interstates, university system, internet Borrowing for short-term job creation

4. what does REMI say? sm Health Care Current issues – Rising costs, lower health results, expenditures Possible long-term benefits – Improved productivity, longer work life Example policy variables – Labor productivity, consumer price/spending, participation rates, government spending (state and federal)

5. what does REMI say? sm Transportation Current issues – Deteriorating infrastructure, new livability standards Possible long-term benefits – Better access, household savings, regional attractiveness Example policy variables – Labor/commodity access, consumer spending, employment, amenity

6. what does REMI say? sm Education Current issues – Falling graduation rates, subpar international ranking Possible long-term benefits – Increased productivity and innovation Example policy variables – Productivity, employment/output, amenity

7. what does REMI say? sm Housing Current issues – Aging housing stock, blighted neighborhoods, sprawl Possible long-term benefits – Consumer savings, efficiency in public services, regional attractiveness Example policy variables – Consumer/government spending, amenity, housing price

8. what does REMI say? sm Energy and Environment Current issues – New focus on renewable energy sources and efficiency Possible long-term benefits – Lower energy costs, energy independence Example policy variables – Consumer spending, production/fuel costs, demand, imports and self-supply

9. what does REMI say? sm Structural Model

10. what does REMI say? sm New Economic Geography Model Structure

11. what does REMI say? sm Weatherization DOE regional spending formula – Low income population, energy expenditures, local climate DOE inputs: – $6,500/house investment – 32% energy savings/house

12. what does REMI say? sm Weatherization Assumptions Increased demand for construction 1/3 free ridership No benefit deterioration in first 10 years All benefits spent on other goods – Real income increases for recipients – Energy suppliers real income decreases

13. what does REMI say? sm Sample Results: Weatherization

14. what does REMI say? sm [Model Demonstration]

15. what does REMI say? sm Contact Us Headquarters: 433 West Street, Suite 4 Amherst, MA 01002 TEL: 413.549.1169 FAX: 413.549.1038 District Office: 700 12 th St. NW, Suite 700 Washington, DC 20005 TEL: 202.904.2490 www.remi.cominfo@remi.com