REMI

Criterion

Explanation

General Description

The REMI model is a forecasting tool that can be variously referred to as an econometric model, an input-output model, or computable general equilibrium model.  The model forecasts the future of a regional economy, and it predicts the effects on that same economy when the user implements a change. The core of the REMI model is an input-output model that represents inter-industry relationships. This way, the industry structure of a particular region is captured within the model, as well as transactions between industries. The REMI model can represent long term general equilibrium between the supply and demand as prices, production, consumption, imports, exports, and other changes occur to stabilize the economic system. The model's equations and responses are estimated using advanced statistical techniques. The model is also capable of capturing the spatial dimension of the economy. This incorporates the productivity and competitiveness benefits due to the concentration, or agglomeration, of economic activity in cities and metropolitan areas, and to the clustering of industries.

Model Domain

https://www.remi.com

Developer

Regional Economic Models, Inc.

Hardware computing requirements

Desktop Application

Code language

GAMS

Original application

Tool to understand changes in regional economies and the impact of public policies in influencing regional economic trends at the local, regional, and/or national level.

Public/proprietary and cost

Proprietary – Cost listed at $10,000+

Physically or empirically based

Empirical

Mathematical methods used

The REMI model incorporates aspects of four major modeling approaches:

1. Input-output
2. General equilibrium
3. Econometric
4. Economic geography

Input data requirements

Energy, Environment, Policy, Taxation, and Economic data gathered from Bureau of Economic Analysis, the Bureau of Labor Statistics, the Department of Energy, the Census Bureau and other public sources built into the model database.

Ease of assembling information from publically available datasets is difficult.

Outputs

Key outputs include: Macroeconomic effects of energy and environmental policies such as fee rebates, renewable portfolio standards, and cap-and-trade measures.

Pre-processing and post-processing tools

Desktop Application

Representation of uncertainty

None Specified

Prevalence

REMI models have been used throughout the world for a wide range of topic areas, including economic development, the environment, energy, transportation, and taxation, forecasting, and planning. REMI is currently used by hundreds of governmental agencies, universities, and others. Articles about the model equations and research findings have been published in professional journals such as the American Economic Review, The Review of Economic Statistics, the Journal of Regional Science, and the International Regional Science Review.

Ease of use for public entities

Requires advanced knowledge of the programming software available through the company. Access is granted only to paying customers and clients.

Ease of obtaining information and availability of technical support

Information and technical support is provided for paying clients.

Source code availability

Not freely available.

Status of model development

Mature model, updated annually.

Challenges for integration

Access to original data and programming is limited. The model would likely need to be interpreted alongside, rather than model integrated with other scientific models in the assessment.