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Regional Input–Output Modeling System
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<p>The Regional Input–Output Modeling System (RIMS II) is a regional <a href="/facts/Economic_model/gNM1Tuct">economic model</a> developed and maintained by the US <a href="/facts/Bureau_of_Economic_Analysis/uLVyugSB">Bureau of Economic Analysis</a> (BEA). </p><p>Regional input–output multipliers such as the RIMS II multipliers allow estimates of how a one-time or sustained increase in economic activity in a particular region will impact other industries located in the region—i.e., estimating local shocks on gross output, value added, earnings, and employment. RIMS II multipliers differ from macro-economic multipliers, which are used to assess the effects of fiscal stimulus on gross national product. Differences in industry-specific regional multipliers are not meaningful, nor appropriate for use in a national context. </p><p>RIMS II allows for estimates at the regional level because the multipliers are based on BEA data at the national and regional level. </p><p>RIMS II multipliers have been used by both the public and private sectors. There are numerous examples of their use: </p> <ul><li>Federal Government agencies have used the multipliers to study the local impact of government regulation on specific industries and to assess the local economic impacts of Federal actions such as military base closings.</li> <li>State and local governments have used the multipliers to estimate the regional economic impacts of government policies and projects and of events, such as firms locating within their state, or to assess the impacts of tourism.</li> <li>Businesses and private consultants have used the multipliers to estimate the economic impacts of a wide range of projects, such as building a new sports facility or expanding an airport; of natural disasters, such as <a href="/facts/Hurricane_Katrina/EflS9fkS">Hurricane Katrina</a>; or of special events, such as national political conventions.</li></ul> <p>RIMS II provides six types of multipliers: final-demand multipliers for output, earnings, employment, and value added; and direct-effect multipliers for earnings and employment. </p>