RIMS II

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RIMS II

• Regional Input-Output Modeling System

Zoë O. Ambargis
BEA/PNREAP/University of Nevada Regional Economic
Workshop Reno, NV September 29, 2009
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What is RIMS II?

• Input-output model developed by the BEA in the
  mid 1970s
• Incorporates linkages among industries in a
  regional economy
• Best suited for analyzing the impacts of small
  changes in a regional economy

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RIMS II Has Been Used to Analyze a Variety of
Projects

• Opening and closing military bases
• Changes in tourism
• New energy facilities
• Construction of sports facilities
• New retail establishments
• New airports or port facilities
• Opening and closing manufacturing plants
• Contribution of universities and hospitals

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Framing Your Analysis

• What is the project/issue being studied?
• What is the change?
• What is the magnitude of the change?
• What is the timing?
• Which industries are affected?
• What is the affected region?

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Ordering RIMS II Multipliers
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Type I and Type II Multipliers

• Type I multipliers
• Industry impacts only
• Total impact direct indirect
• Type II multipliers
• Industry impacts and household expenditure
  impacts
• Total impact direct indirect induced
• More commonly used than Type I multipliers

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Annual and Benchmark Series

• Annual series
• 2006 national annual I-O data and 2006 regional
  data
• More current, less detailed
• 60 aggregate industries
• Benchmark series
• 1997 national benchmark I-O data and 2006
  regional data
• More detailed, less current
• 473 detailed and 60 aggregate industries

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Application Example 1
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RIMS II Multipliers
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Calculating Impacts Using Type II Final-Demand
Multipliers
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Accessing Your Multipliers
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Multiplier Table 1.5
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Comparison of Type I and Type II Impacts
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Application Example 2
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Calculating Impacts Using Type II Direct-Effect
Multipliers
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Multiplier Table 1.5
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Common Mistakes

• Defining the study area incorrectly
• Averaging multipliers
• Treating employment impacts as FTE impacts
• Not converting purchasers values to producers
  values
• Treating changes in intermediate use as
  final-demand changes
• Not considering the net impact
• Using multipliers for Other government
  enterprises to estimate impacts of government
• Treating output impacts as Gross Domestic Product
  (GDP) impacts

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2002 Benchmark Update

• RIMS II multipliers will be based on
• 2002 national benchmark I-O data
• 2007 regional data
• Dimensions of tables will change
• 406 detailed industries (compared to 473)
• 62 aggregate industries (compared to 60)
• 21 row industries (compared to 20)

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Thank You

• Zoë Ambargis
• Becca Bess
• Hope Franklin
• Thomas McComb
• Web site www.bea.gov/regional/rims/
• Phone [phone]
• Fax [phone]
• E-mail rims_at_bea.gov