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1 <br />Attachment A <br />I <br />1 <br />Effective planning for public- and private -sector projects and programs <br />at the State and local area level requires systematic analysis of the economic <br />impacts of the projects and programs on affected regions. Systematic analysis <br />of economic impacts, in turn, must take into account interindustry <br />relationships within regions because those relationships in large part <br />determine regional responses to project and program changes. Thus, regional <br />input-output (I-0) multipliers, which account for interindustry relationships <br />within regions, are useful tools for regional economic impact analysis. <br />In. the mid-1970's, the Bureau of Economic BEA Analysis completed <br />Y ( ) <br />development of a method for estimating regional I-0 multipliers known as RIMS <br />(Regional Industrial Multiplier System), which was b-.�ed on the work of Garnick <br />and Drake./1/ More recently, BEA completed an enhancement of RIMS known as <br />RIMS II (Regional Input -Output Modeling System)./2/ <br />RIMS II is based on an accounting framework called an I-0 table. An I-0 <br />table shows, for each industry, industrial distributions of inputs purchased <br />and outputs sold. A typical I-0 table in RIMS II derives mainly from two data <br />sources: (1) BEA's national I-0 table, which shows the input and output <br />structure of more than 500 U.S. industries and 2 BEA's four -digit ( � g t Standard <br />Industrial Classification (SIC) county wage -and -salary data, which can be used <br />to adjust the national I-0 table to show a region's industrial structure and <br />trading patterns./3/ <br />i <br />Intccducticn to <br />Re3i0na1 Multipliers: <br />A User Hand,-00k for the <br />Regional Input - <br />Output Mc�2eling <br />Sys; am (RIZIS II / U.S. <br />Depactm nt of, C:.ir_;erca, <br />May 1S,80. <br />1 <br />C� <br />1 <br />