The Structure of the REMI - Model

Output

Market SharesLabor & Capital Demand

Population & Labor Supply

Wages, Prices, & Profits

REMI Model Structure

8. Commodity Access Index

10. Change in Local Supply

(1) Output Block(1) Output Block

1. Real Disposable

Income

2. Consumption

3. International Exports

5. State and Local Government

Spending

4. Investment

9. Intermediate Input Productivity

6. Output

7. Intermediate Inputs

8. Commodity Access Index

10. Change in Local Supply

(1) Output Block(1) Output Block

1. Real Disposable

Income

2. Consumption

3. International Exports

5. State and Local Government

Spending

4. Investment

9. Intermediate Input Productivity

6. Output

7. Intermediate Inputs

Composite Price (Block 4)

Economic Migrant (Block 3)

Market Share(Block 5)

Population(Block 5)

Optimal vs. Actual Capital Stock

(Block 2)

Share of Domestic Markets (Block 4)

Share of International

Market (Block 4)

Employment (Block 2)

Wage Rate(Block 4)

Not ShownCommuter Income

or Outflow, Property Income, Transfers, Taxes, Social Security

Payments

Consumer Prices

(Block 4)

8. Actual Capital Stock

3. OccupationEmployment

1. LaborProductivity

5. Labor Substitution

Effect for Capital

9. Gap between Actual and

Optimal Stock

11. Government Employment

7. Optimal Non-

Residential Capital Stock

4. Labor Access Index

by Occupation and Industry

6. Capital Intensity

(2) Labor & Capital Demand

10. Optimal Residential

Capital Stock

2. Industry Employment

8. Actual Capital Stock

3. OccupationEmployment

1. LaborProductivity

5. Labor Substitution

Effect for Capital

9. Gap between Actual and

Optimal Stock

11. Government Employment

7. Optimal Non-

Residential Capital Stock

4. Labor Access Index

by Occupation and Industry

6. Capital Intensity

(2) Labor & Capital Demand

10. Optimal Residential

Capital Stock

Real Disposable

Income

(Block 1)

Government Output

(Block 1)

Wage Rate vs. Capital (Block 4)

2. Industry Employment

Output (Block 1)

Investment (Block 1)

Real Disposable Income

(Block 1)

Calculating Earnings(Block 1)

Composite Wage Rate (Block 4)

Wage Rate and Relative Employment Opportunity (Block 4)

(3) Population Labor Supply

1. Economic Migration

5. Participation Rate

4. The Employment to Potential Labor

Force 3. Potential Labor Force

2. Population

6. Labor Force

(3) Population Labor Supply

1. Economic Migration

5. Participation Rate

4. The Employment to Potential Labor

Force 3. Potential Labor Force

2. Population

6. Labor Force

Residentially Adjusted

Employment (Block 2) Local

GovernmentSpending (Block 1)

Housing Price

(Block 4)

EmploymentOpportunity

(Block 4)

Wage Rate

(Block 4)

Relative Real Wage

Rate (Block 4)

Commodity AccessIndex

(Block 1)

EmploymentOpportunity

E/LF(Block 4)

Relative Real Wage

Rate (Block 4)

1. Employment Opportunity

E/LF

8. Housing Price

10. Real Relative

Wage Rate for Migrants

9. Consumer Prices Including Housing Price

7. Real Wage Rate

6. Consumer Prices

2. Wage Rate3. Composite Wage Rate

4. Composite Input Costs

5. Production Costs

(4) Wages, Prices & Costs

1. Employment Opportunity

E/LF

8. Housing Price

10. Real Relative

Wage Rate for Migrants

9. Consumer Prices Including Housing Price

7. Real Wage Rate

6. Consumer Prices

2. Wage Rate3. Composite Wage Rate

4. Composite Input Costs

5. Production Costs

(4) Wages, Prices & Costs

Labor Access Index by Occupation and Industry (Block 2)

Input Access Productivity

Effect (Block 1)

Change in Population

Density (Block 3)

Change in Real

Disposable Income

Migrants (Block 3)

Residentially-Adjusted

Employment (Block 2)

Occupational Employment

(Block 4)

Labor Force

Share of International Exports and Imports (Block 5)

Share of Domestic Markets (Block 5)

(5) Market Shares

1. Share of Domestic Market

2. Share of International Exports and

Imports Markets

(5) Market Shares

1. Share of Domestic Market

2. Share of International Exports and

Imports Markets

Output for Domestic Market

(Block 1)

International Exports

(Block 1)

Changes in Quantity of

Supply (Block 1)

Changes in Delivered Costs Relative to Competitors’ (Block 4) and Other

Regions’ Delivered Prices

State and Local Government Spending

Investment

(1) Output

Output

Exports

Consumption

Real Disposable Income

(4) Wages, Prices, and Production Costs

Employment Opportunity

Housing Price

Wage Rate Composite Wage Rate Production Costs

Composite PricesReal Wage RateConsumer Price

Deflator

(3) Demographic (2) Labor & Capital Demand

Optimal Capital Stock

Employment

Labor/Output Ratio

(5) Market Shares

Domestic Market Share

International Market Share

Population

ParticipationRate

Migration

Labor Force

REMI Model Linkages (Excluding Economic Geography Linkages)

Output

Market SharesLabor & Capital Demand

Population & Labor Supply

Wages, Prices, & Profits

REMI Model Structure

REMI Model Structure (2002 - )

Output

Market SharesLabor & Capital Demand

Population & Labor Supply

Wages, Prices, & Costs

ECONOMIC GEOGRAPHY LINKAGES

Intermediate Input Productivity

Intermediate Inputs (1) Output Block

(4) Wages, Prices, and Production Costs

Composite Wage

Production Costs

Composite Prices

(3) Demographic and Labor Supply

(2) Labor & Capital Demand

Labor Access Index

Employment

Labor Productivity

(5) Market Shares

Domestic Market Share

International Market Share

EconomicMigrants

Output

Commodity Access Index

Economic Geography Linkages