Evaluating Alternative Regional Planning Models

Abstract

The REMI and IMPLAN models are widely used approaches to estimating economic impacts for small regions. However, few benchmarks exist for assessing these estimates. This paper evaluates the relative performance of these models in terms of a given impact: the opening of an automobile assembly plant in central Illinois. Although our results are not conclusive and are limited by our application, we find that in terms of several indirect performance criteria, IMPLAN's outcomes, on balance, are somewhat more plausible than those for REMI.HE REMI MODEL, DEVELOPED BY Regional Economic Models, Inc., has T become increasingly popular among regional planners as a tool for analyzing subnational and substate economies. IMPLAN (Impact Planning), an alternative model developed by the Forest Service of the U.S. Department of Agriculture, is likely to be used for similar purposes in coming years. Unfortunately, many planners only vaguely understand how these models work, and have no basis for evaluating their outcomes. The regional science literature is beginning to assess these newer models. Brucker et al. (1987) review several "ready-made" input-output models, all of which are in some respect accessible to the public. Their work focuses on fundamental characteristics and methodology for five such models.They do not address, however, the crucial question of relative model performance.Many economic impact models are available, besides REMI and IMPLAN, to study regional economies. For example, the Bureau of Economic Analysis (BEA) has used RIMS I1 (Regional Input-Output Multiplier System), and the Army Corps of Engineers has used AIMS (Automated Input-Output Multiplier System) to analyze regional economic impacts. These are multisector models which generate county-level sector-specific multipliers resembling those derived from standard John B .

Regional economic impacts of Grand Canyon river runners

“…IMPLAN and REMI (Regional Economic Models, Inc.) are the two most widely used regional economic modeling software, with the BEA's RIMS II model receiving moderate use (Rickman and Schwer, 1995). In an evaluation of relative performance, IMPLAN's outcomes were compared to its main competitor REMI and were proven through several indirect performance criteria to be more plausible than those of REMI (Crihfield and Campbell, 1991).…”

Regional economic impacts of changes in electricity rates resulting from Western Area Power Administration`s power marketing alternatives

“…A full discussion of the IMPLAN modeling framework can be found in Minnesota IMPLAN Group (1994). Summaries of the various applications of the IMPLAN model can be found in Rose et al (1988) and Crihfield and Campbell (1991). Although the IMPLAN system and REM1 framework have some small differences related to the data they use for regionalizing national data, the multiplier estimates produced by the two modeling systems are very similar.…”

“…Use of the IMPLAN system does not, therefore, pose any problems in consistency with the remainder of the regional analysis. Crihfield and Campbell (1991) compares the two modeling approaches.…”

Economic Impact of Pharmacy Graduates on a Regional Economy

“…20 We used the IMPLAN software because it is relatively simple, provides reasonable estimates, and is the approach most widely accepted by policymakers. 28 Other approaches to economic impact modeling have also been developed and utilized previously; for example, regression-based modeling, the Regional Economic Model Incorporated Policy Insight (REMI) input-output model, and in the case of the forest service industry, million board feet (MMBF)-based input-output modeling. 8,28,29 The mechanics of input-output analysis are straightforward.…”

“…28 Other approaches to economic impact modeling have also been developed and utilized previously; for example, regression-based modeling, the Regional Economic Model Incorporated Policy Insight (REMI) input-output model, and in the case of the forest service industry, million board feet (MMBF)-based input-output modeling. 8,28,29 The mechanics of input-output analysis are straightforward. 30 Within a particular economic region, there are n different (mutually exclusive and collectively exhaustive) industries.…”