1. Regional Input-Output Modeling System (RIMS II) Zoë O. Ambargis Understanding Regional Economic Data for Policy and Planning Dallas, TX September 8, 2006

2. www.bea.gov 2 What is RIMS II?  Developed in the mid 1970’s  Model incorporates the linkages among the industries in a regional economy  Provides five types of input-output multipliers for any county or multi-county region  The multipliers are useful, baseline, order-of- magnitude estimates commonly used to analyze the impacts of economic development projects

3. www.bea.gov 3 How Have RIMS II Multipliers Been Used?  Opening and closing military bases  Tourist expenditures  New energy facilities  Construction of sports facilities  New retail establishments  New airports or port facilities  Opening and closing manufacturing plants  University expenditures

4. www.bea.gov 4 How Have RIMS II Multipliers Been Used?

5. www.bea.gov 5 Who Uses RIMS II Multipliers?

6. www.bea.gov 6 RIMS II Multipliers MultiplierDefinition Final-demand output Total industry output per $1 change in final demand Final-demand earnings Total industry earnings per $1 change in final demand Final-demand employment Total number of jobs per $1 million change in final demand Direct-effect earnings Total household earnings per $1 initial change in household earnings Direct-effect employment Total number of jobs per initial change in jobs

7. www.bea.gov 7 Questions to Ask  What is being studied?  What is the affected region?  Is there more than one phase?  How long will the project take?  What are the affected industries?  What is the final-demand change?  How large is the final-demand change?

8. www.bea.gov 8 Example 1: Investment in New Construction  Question: What is the total impact on a region of building a new sports facility?  What is the final-demand change?  $100 million investment in new construction  What is the affected region?  Dallas-Fort Worth-Arlington, TX MSA

9. www.bea.gov 9 Example 1: Total Impact of an Investment in New Construction

10. www.bea.gov 10 Example 1: Total Output Impact of Investment in New Construction

12. www.bea.gov 12 Example 2: Sports Facility Operation  Question: What is the total impact on a region of sports facility operation?

13. www.bea.gov 13 Example 2: Total Impact of Sports Facility Operation

14. www.bea.gov 14 Example 2: Total Earnings Impact of Sports Facility Operation

15. www.bea.gov 15 Example 2: Total Employment Impact of Sports Facility Operation

16. www.bea.gov 16 Important Considerations  Multipliers are best suited for estimating the impacts of changes that are small relative to the size of the region’s economy  Size of multiplier will vary from one industry to another and from one regional economy to another

17. www.bea.gov 17 Multiplier Comparisons by Region

18. http://www.bea.gov/bea/regional/rims/

19. www.bea.gov 19 Coming Soon… Web-based Ordering and Delivery

20. www.bea.gov 20 Contact Information  RIMS II Staff  Zoë Ambargis  Rebecca Bess  Hope Franklin  Molly Weller  Phone 202/ 606-5343  Fax 202/ 606-5321  E-mail RIMSREAD@bea.gov