In the 1970’s, Dr. George Treyz, the founder of Regional Economic Models, Inc. (REMI), worked with the Nobel Prize-winner Laurence Klein and other pioneers in the field of econometric modeling. Treyz, along with Ann Friedlander and Benjamin Stevens, developed the Massachusetts Economic Policy Analysis (MEPA) model, one of the first regional macroeconomic models. The Treyz, Friedlander, Stevens methodology was expanded and generalized under a National Cooperative Highway Research Program grant, becoming the basis for REMI’s future models.
REMI was 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 were among the first clients.
A series of major economic research projects expanded the core REMI model into a more comprehensive representation of the regional economy. REMI published 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 experienced a major expansion of its client base and the REMI model became the de facto standard for economic policy analysis modeling.
Frederick Treyz joined REMI after studying under international leaders in regional economics and modeling at Princeton University and the University of Pennsylvania. In 1994, REMI developed the first multi-regional United States model consisting of the fifty states and District of Columbia. REMI implemented new data suppression procedures, consumption equations, and participation rate equations during this time. In 1997, REMI released Policy Insight, advancing regional modeling with an intuitive graphical user interface.
Wei Fan, Frederick Treyz and George Treyz published “An Evolutionary New Economic Geography Model” in the Journal of Regional Science. This theory was implemented in the REMI model, the first use of New Economic Geography theory in a regional policy analysis model. REMI developed models internationally. Early models were built for British Columbia, Tuscany, and the Netherlands. REMI introduced TranSight®, the first widely available model that integrates travel demand models with a regional macroeconomic model.