In the 1970’s, Dr. George Treyz, the founder of Regional Economic Models, Inc. (REMI), works with the Nobel Prize-winner Laurence Klein and other pioneers in the field of econometric modeling. Treyz, along with Ann Friedlander and Benjamin Stevens, develops the Massachusetts Economic Policy Analysis (MEPA) model, one of the first regional macroeconomic models. The Treyz, Friedlander, Stevens methodology is expanded and generalized under a National Cooperative Highway Research Program grant, becoming the basis for REMI’s future models.
REMI is founded in 1980 for the purpose of developing regional forecasting and policy analysis models to inform and improve the quality of public policy decisions. The University of Colorado and the state of Minnesota are among the first clients.
A series of major economic research projects expand the core REMI model into a more comprehensive representation of the regional economy. REMI publishes seminal papers on its model in the American Economic Review, the Review of Economics and Statistics, and the Journal of Regional Science. Regional Economic Models, Inc experiences a major expansion of its client base and the REMI model becomes the de facto standard for economic policy analysis modeling.
Frederick Treyz joins REMI after studying under international leaders in regional economics and modeling at Princeton University and the University of Pennsylvania. In 1994, REMI develops the first multi-regional United States model consisting of the fifty states and District of Columbia. REMI implements new data suppression procedures, consumption equations, and participation rate equations during this time. In 1997, REMI releases Policy Insight, advancing regional modeling with an intuitive graphical user interface.
Wei Fan, Frederick Treyz and George Treyz publish “An Evolutionary New Economic Geography Model” in the Journal of Regional Science. This theory is implemented in the REMI model, the first use of New Economic Geography theory in a regional policy analysis model. REMI develops models internationally. Early models are built for British Columbia, Tuscany, and the Netherlands. REMI introduces TranSight®, the first widely available model that integrates travel demand models with a regional macroeconomic model.