The REMI model is a dynamic forecasting and policy analysis tool that can be variously referred to as an econometric model, an input-output model, or even a computable general equilibrium model. In fact, REMI integrates several modeling approaches, incorporating the strengths of each methodology while overcoming its limitations. The result is a comprehensive model that answers “what if…?” questions about your economy.
REMI models contain detailed industries. At its core, the REMI model incorporates the complete inter-industry relationships found in input-output models.
REMI models are dynamic; they demonstrate economic changes over time, allowing firms and individuals to change their behavior in response to changing economic conditions. These responses are based in part on general equilibrium economic theory.
REMI models are sometimes referred to as “econometric models,” due to the underlying equations and response estimations using advanced statistical techniques.
The spatial dimension of the economy is represented by the underlying “New Economic Geography” structure of the REMI model. 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.