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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
www.bea.gov
What is RIMS II?
▪ Input-output model developed by the BEA
in the mid 1970’s
▪ Incorporates linkages among industries in
a regional economy
▪ Best suited for analyzing the impacts of
small changes in a regional economy
www.bea.gov
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RIMS II Has Been Used to
Analyze a Variety of Projects
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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
www.bea.gov
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Framing Your Analysis
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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?
www.bea.gov
4
Ordering RIMS II Multipliers
www.bea.gov
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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
www.bea.gov
6
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
www.bea.gov
7
Application Example 1
www.bea.gov
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RIMS II Multipliers
www.bea.gov
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Calculating Impacts Using Type II
Final-Demand Multipliers
www.bea.gov
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Accessing Your Multipliers
www.bea.gov
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Multiplier Table 1.5
www.bea.gov
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Comparison of Type I and Type II
Impacts
www.bea.gov
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Application Example 2
www.bea.gov
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Calculating Impacts Using
Type II Direct-Effect Multipliers
www.bea.gov
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Multiplier Table 1.5
www.bea.gov
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Common Mistakes
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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
www.bea.gov
17
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)
www.bea.gov
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Thank You
Zoë Ambargis
Becca Bess
Hope Franklin
Thomas McComb
Web site: www.bea.gov/regional/rims/
Phone: 202-606-5343
Fax: 202-606-5321
E-mail: [email protected]
www.bea.gov
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