REMIREMI®® TranSight™: TranSight™:An In-Depth LookAn In-Depth Look

Regional Economic Models, Inc.Amherst, MA

Overview of PresentationOverview of Presentation

• TranSightTranSight• REMI Policy InsightREMI Policy Insight• Travel Demand ModelsTravel Demand Models• Modeling Transportation ImpactsModeling Transportation Impacts• Viewing ResultsViewing Results

Regional Economic Models, Inc. Regional Economic Models, Inc. (REMI) provides…(REMI) provides…

Policy InsightPolicy Insight: A macroeconomic forecasting : A macroeconomic forecasting model that shows the total economic, demographic model that shows the total economic, demographic and fiscal effects of policy initiatives on local and fiscal effects of policy initiatives on local regionsregions

TranSightTranSight: A model that integrates Policy Insight : A model that integrates Policy Insight with transport planning and travel demand models with transport planning and travel demand models to show the total economic, demographic, and to show the total economic, demographic, and fiscal effects of transportation infrastructure fiscal effects of transportation infrastructure projectsprojects

Comparison of modelsComparison of models

Transportationdemand model

Project and region specific data

EDFS-53

TranSight

Policyvariables EDFS-53

Policy Insight

• Transportation “What If’s” • General “What If’s”• Forecasting

REMI TranSight™REMI TranSight™

First and foremost, First and foremost, REMIREMI TranSightTranSight integrates REMI Policy integrates REMI Policy InsightInsight®®—the world’s leading economic and fiscal policy —the world’s leading economic and fiscal policy analysis and simulation model—with the transport planning analysis and simulation model—with the transport planning and travel demand models used most often by government and travel demand models used most often by government

and private sector planners.and private sector planners.

REMI TranSight™REMI TranSight™

And because REMI Policy InsightAnd because REMI Policy Insight®® embodies the latest embodies the latest research advances in economic geography, research advances in economic geography, REMI REMI TranSightTranSight can show transportation planners and policy can show transportation planners and policy makers the makers the total economic effectstotal economic effects of new investments in of new investments in highways, transit, and other transportation infrastructure.highways, transit, and other transportation infrastructure.

REMI TranSight™REMI TranSight™

In particular, In particular, REMI TranSightREMI TranSight can quantify the unique can quantify the unique contribution transportation investments make toward contribution transportation investments make toward creating and expanding industry clusters, some of the main creating and expanding industry clusters, some of the main drivers in diversifying and sustaining regional economic drivers in diversifying and sustaining regional economic development.development.

How a REMI TranSight simulation How a REMI TranSight simulation worksworks

Alternative Forecast

Control Forecast

TranSight™ Structure

TranSight

Economic Results

EDFS-53

REMI PolicyVariables

Transportation CostMatrix

TransportationModel

VMTVHT

Project-SpecificData

Fuel DemandEmissions

Safety

ConstructionOperation

FinanceIndustry Effects

Transight™ Transight™ Structure ComplexStructure Complex

REMI TranSight Results:REMI TranSight Results: Sample Results by IndustrySample Results by Industry

•Sector Employment (to 3 digits)

•Intermediate Output Demand Empl

•Local Consumption Employment

•Investment Activity Employment

•Government Demand Employment

•Export Employment (Gross)

•Relative Production Cost

•Relative Composite Labor Cost

•Relative Fuel Cost

•Relative Capital Cost

•Relative Composite Input Cost

•Relative Factor Productivity

•Regional Purchase Coefficient

•Labor Intensity

•Average Annual Wage Rate

•Industrial Mix Index

•Demand, Imports, Self Supply

•Exports: Region, US, World

•Sector Output (to 3 digits)

•Value Added

•Wage & Salary Disbursements

More Results of More Results of REMI TranSightREMI TranSight

• Personal IncomePersonal Income

• Transfer PaymentsTransfer Payments

• TaxesTaxes

• Disposable Personal IncomeDisposable Personal Income

• Price (PCE) IndexPrice (PCE) Index

• Real Disposable IncomeReal Disposable Income

• GRP (by 22 final demandGRP (by 22 final demand

categories, & by sector)categories, & by sector)

• Empl (by demand, & sector)Empl (by demand, & sector)

• PopulationPopulation

• MigrantsMigrants

• Natality RateNatality Rate

• Survival RateSurvival Rate

• Labor ForceLabor Force

• ParticipationParticipation

RateRate

Aggregate Variables:Aggregate Variables: Age/Gender/Age/Gender/Cohort Variables:Cohort Variables:

REMI EDFS-53 FeaturesREMI EDFS-53 Features

Applies economic theory, inter-industry links:Applies economic theory, inter-industry links:

Includes New Economic Geography TheoryIncludes New Economic Geography Theory

Is calibrated & estimated using regional data Is calibrated & estimated using regional data

Is dynamic and predicts when results will occurIs dynamic and predicts when results will occur

Cause & effect model structure explains resultsCause & effect model structure explains results

Alternative structures allow sensitivity testsAlternative structures allow sensitivity tests

Is the leading Policy Analysis model in the U.S.Is the leading Policy Analysis model in the U.S.

REMI EDFS-53 StructureREMI EDFS-53 Structure (2002 - ) (2002 - )WITH ECONOMIC GEOGRAPHY LINKAGESWITH ECONOMIC GEOGRAPHY LINKAGES

Output

Market SharesLabor & Capital Demand

Population & Labor Supply

Wages, Costs & Prices

REMI Model Linkages (Excluding Economic Geography Linkages)

State and Local Government Spending

Investment

(1) Output(1) Output

Output

Exports

Consumption

Real Disposable Income

(4) Wages, Prices, and Production Costs(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(3) Demographic (2) Labor & Capital (2) Labor & Capital DemandDemand

Optimal Capital Stock

Employment

Labor/Output Ratio

(5) Market Shares(5) Market Shares

Domestic Market Share

International Market Share

Population

ParticipationRate

Migration

Labor Force

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

Integrated Modeling ApproachIntegrated Modeling Approach The REMI model integrates key aspects of several The REMI model integrates key aspects of several economic modeling tools:economic modeling tools:

ModelModel AspectAspect

I/OI/O Inter-industry processing sectorInter-industry processing sector

CGECGE Equilibrium tendencies in factor Equilibrium tendencies in factor and material input marketsand material input markets

EconometricEconometric Estimates derived from panel dataEstimates derived from panel data

Economic Geography Economic Geography Labor and product agglomerationLabor and product agglomeration

New Economic GeographyNew Economic Geography

Based on monopolistic competitionBased on monopolistic competition Increasing economies of scale for firms (decreasing Increasing economies of scale for firms (decreasing

marginal costs).marginal costs). Access to product varieties from different regions.Access to product varieties from different regions. Different delivered prices in the same industry due to Different delivered prices in the same industry due to

transportation or other distance deterrence costs.transportation or other distance deterrence costs. Cross hauling, cluster agglomeration, and labor productivity Cross hauling, cluster agglomeration, and labor productivity

are explained by microeconomic gains from having choice are explained by microeconomic gains from having choice and variety.and variety.

New EG FeaturesNew EG FeaturesLabor Productivity ConceptsLabor Productivity Concepts

Labor Access IndexLabor Access Index Occupation & industry effects of selecting best workersOccupation & industry effects of selecting best workers

Composite Labor CostComposite Labor Cost Relative wage rate adjusted for labor access indexRelative wage rate adjusted for labor access index Includes commuter distance cost blended into wage Includes commuter distance cost blended into wage

ratesrates Occupation CodesOccupation Codes

Standard occupation codes (SOCs) are implementedStandard occupation codes (SOCs) are implemented Better groupings with sectors for analysis & displayBetter groupings with sectors for analysis & display

New EG FeaturesNew EG FeaturesCommodity Price ConceptsCommodity Price Concepts

Delivered Price (wtd avg by sector at place of use)Delivered Price (wtd avg by sector at place of use) Source production cost + transport cost to place of useSource production cost + transport cost to place of use Production & transport costs reflect every source locationProduction & transport costs reflect every source location

Commodity Access Index (by sector at place of use)Commodity Access Index (by sector at place of use) Producer & consumer effects of better commodity choiceProducer & consumer effects of better commodity choice Reflects market share changes due to composite price changesReflects market share changes due to composite price changes

Composite Price (by sector at place of use)Composite Price (by sector at place of use) Delivered price adjusted for commodity access indexDelivered price adjusted for commodity access index

Production Cost (by sector at place of use)Production Cost (by sector at place of use) Includes intermediate inputs from all sectors & locationsIncludes intermediate inputs from all sectors & locations Local production cost captures intermediate input composite prices; Local production cost captures intermediate input composite prices;

composite labor cost; and capital and fuel costscomposite labor cost; and capital and fuel costs

New EG FeaturesNew EG FeaturesTrade Flows and Market SharesTrade Flows and Market Shares

Trade Flows TreatmentTrade Flows Treatment

Shows trade flows from each region to each other Shows trade flows from each region to each other region in the model, plus rest of US and rest of worldregion in the model, plus rest of US and rest of world

Domestic Market Shares DisplayDomestic Market Shares Display

Shows share of local demand met by regions in modelShows share of local demand met by regions in model

New EG FeaturesNew EG FeaturesTransportation Costs MatrixTransportation Costs Matrix

There are three components of the matrix:There are three components of the matrix: Commuting costsCommuting costs Accessibility costsAccessibility costs Transportation costsTransportation costs

The three components respond to changes in the The three components respond to changes in the effective distance between regions.effective distance between regions.

Multi-Regional Price and Wage Linkages

Commodity Access

Commodity Access

Commodity Access

At market accessibility estimated costs based on dynamically estimated price elasticity

Occupational Labor Access Productivity

Composite Labor Costs

Industry Labor Access Productivity

Occupational Labor Access Productivity

Composite Labor Costs Industry

Labor Access Productivity

Occupational Labor Access Productivity

Composite Labor Costs

Industry Labor Access Productivity

Based on commuting in hours per day at one-half of the daily wage

Delivered Prices and Costs

Delivered Prices and Costs

Delivered Prices and Costs

Based on estimated transportation costsComposite and

Production Costs

Composite and Production Costs

Composite and Production Costs

Travel Demand ModelsTravel Demand Models

TranSight can be tailored to use outputs from a variety of commercially-TranSight can be tailored to use outputs from a variety of commercially-available or custom travel demand models. These include:available or custom travel demand models. These include:

• TranPlanTranPlan• TP+/CubeTP+/Cube• TransCADTransCAD• HERS-STHERS-ST• Customized modelsCustomized models

The selected model should be run under both a baseline scenario and an The selected model should be run under both a baseline scenario and an alternative scenario that factors in the proposed transportation alternative scenario that factors in the proposed transportation improvementimprovement

Travel Demand ModelsTravel Demand Models

Variables from the travel demand models that are integrated Variables from the travel demand models that are integrated with TranSight to calculate the effects of a transportation with TranSight to calculate the effects of a transportation project include:project include:

• Vehicle miles traveled (VMTs)Vehicle miles traveled (VMTs)• Vehicle hours traveled (VHTs)Vehicle hours traveled (VHTs)

These inputs are needed for the following:These inputs are needed for the following:• Each model regionEach model region• Each forecast yearEach forecast year• Road types (e.g. freeway, arterial) if availableRoad types (e.g. freeway, arterial) if available• Time-of-day (e.g., AM/PM Peak) if available Time-of-day (e.g., AM/PM Peak) if available • Both the baseline and alternative scenariosBoth the baseline and alternative scenarios

View Transport Model Details

Construction andConstruction andMaintenance CostsMaintenance Costs

Overview:Overview: Projected annual costs incurred by government for Projected annual costs incurred by government for

construction, maintenance and repair are entered by userconstruction, maintenance and repair are entered by user Project financing can be split between federal, state, and Project financing can be split between federal, state, and

local governmentlocal government Work is usually contracted out to private construction Work is usually contracted out to private construction

firms, which creates jobs and demand for intermediate firms, which creates jobs and demand for intermediate inputsinputs

Operation and maintenance costs more significant for Operation and maintenance costs more significant for public transit than roadspublic transit than roads

Construction andConstruction andMaintenance CostsMaintenance Costs

The EDFS-53 connection:The EDFS-53 connection:• Increased annual sales by the construction Increased annual sales by the construction

industry, to reflect expenses on construction and industry, to reflect expenses on construction and upkeepupkeep

• Government expenditures, apportioned to Government expenditures, apportioned to federal, state and local levels according to federal, state and local levels according to financing percentagesfinancing percentages

Enter construction cost data

Emissions Costs/BenefitsEmissions Costs/BenefitsOverview of theory:

• Two countervailing effects of road upgrades

•Increased miles traveled (emissions increase)

•Increased average speeds (emissions decrease)

balance depends on speed changes of pre-existing traffic relative to percentage of new traffic

• Dose-response functions connect emissions rates to incidence of various health maladies

• Costs of health problems include lost work days and leisure activities, lower productivity, medical expenses

• Public transit reduces emissions via substitution away from cars

Emissions Costs/BenefitsEmissions Costs/Benefits

Overview of data:Overview of data:• Emissions rates (grams/mile) vary by speed for Emissions rates (grams/mile) vary by speed for each of five pollutants: each of five pollutants:

•Carbon Monoxide (CO)Carbon Monoxide (CO)

•Volatile Organic Compounds (VOCs)Volatile Organic Compounds (VOCs)

•Nitrogen Oxides (NOx)Nitrogen Oxides (NOx)

•Sulfur Oxides (SOx)Sulfur Oxides (SOx)

•Small Particulate Matter (PM-10)Small Particulate Matter (PM-10)

**EPA’s MOBILE6 and PART5 models are**EPA’s MOBILE6 and PART5 models areused to estimate these emissions rates. used to estimate these emissions rates.

C a r b o n M o n o x i d e

0

1 0

2 0

3 0

4 0

5 0

6 0

0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0 5 5 6 0 6 5 7 0 7 5

S p e e d ( m i l e s / h o u r )

Emiss

ions (

grams

/mile)

V o l a t i l e O r g a n i c C o m p o u n d s a n d N i t r o g e n O x i d e s

0

1

2

3

4

5

6

0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0 5 5 6 0 6 5 7 0 7 5

S p e e d ( m i l e s / h o u r )

Emiss

ions (

grams

/mile)

V O C

N O x

C a r b o n M o n o x i d e

0

1 0

2 0

3 0

4 0

5 0

6 0

0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0 5 5 6 0 6 5 7 0 7 5

S p e e d ( m i l e s / h o u r )

Emiss

ions (

grams

/mile)

V o l a t i l e O r g a n i c C o m p o u n d s a n d N i t r o g e n O x i d e s

0

1

2

3

4

5

6

0 5 1 0 1 5 2 0 2 5 3 0 3 5 4 0 4 5 5 0 5 5 6 0 6 5 7 0 7 5

S p e e d ( m i l e s / h o u r )

Emiss

ions (

grams

/mile)

V O C

N O x

Emissions Costs/BenefitsEmissions Costs/Benefits

Overview of calculation:• Health costs (per gram of emissions) for each pollutant derived from nationwide or local impact studies, and may vary by year• Change in emissions costs computed as follows:

…where:ECj = Change in emissions cost for pollutant j ($)

ERj = Emissions rate for pollutant j (gram/mile)

CPGj = Emissions cost per gram for pollutant j ($/gram)

VMTalt = Vehicle miles traveled under the alternative scenario

VMTbase = Vehicle miles traveled under the baseline scenario

)(** basealtjjj VMTVMTCPGEREC

Emissions Costs/BenefitsEmissions Costs/Benefits

The EDFS-53 connection: Non-pecuniary amenities accruing to laborers and their dependents, which stimulates migration into or out of the region where the transportation project is completed, depending upon whether the benefits are net positive or negative

Safety Costs/BenefitsSafety Costs/BenefitsOverview:Overview: Benefits/costs of a transportation project include the following Benefits/costs of a transportation project include the following

aspectsaspects The values of injuries and lives lostThe values of injuries and lives lost**

This value may increase due to a gain in miles traveled This value may increase due to a gain in miles traveled This value may decrease due to safety improvementsThis value may decrease due to safety improvements

Property damageProperty damage**** Delay due to automobile accidentsDelay due to automobile accidents****

May vary by year to reflect rising medical and insurance costsMay vary by year to reflect rising medical and insurance costs

*Value taken from U.S. DOT estimation of the value of life (currently $3 mil/life)*Value taken from U.S. DOT estimation of the value of life (currently $3 mil/life)**Value taken from National Highway Traffic Safety Administration, **Value taken from National Highway Traffic Safety Administration, The Economic Cost of The Economic Cost of

Motor Vehicle Crashes 1994; Lawrence J. Blincoe, 1996Motor Vehicle Crashes 1994; Lawrence J. Blincoe, 1996

Safety Costs/BenefitsSafety Costs/Benefits

Overview of calculation:Overview of calculation:• Accident rates (per mile) should be derived from local data Accident rates (per mile) should be derived from local data

by road type, and can vary by year and time period (e.g., by road type, and can vary by year and time period (e.g., A.M. Peak) if data availability permitsA.M. Peak) if data availability permits

• Changes in safety costs computed as follows:Changes in safety costs computed as follows:

……where:where:SCSCjj = Change in safety cost for road/accident type j ($) = Change in safety cost for road/accident type j ($)

ARARjj = Accident rate for road/accident type j (accident/mile) = Accident rate for road/accident type j (accident/mile)

CPACPAjj = Safety cost per accident for road/accident type j ($/accident) = Safety cost per accident for road/accident type j ($/accident)

VMTVMTaltalt = Vehicle miles traveled under the alternative scenario = Vehicle miles traveled under the alternative scenario

VMTVMTbasebase = Vehicle miles traveled under the baseline scenario = Vehicle miles traveled under the baseline scenario

)(** basealtjjj VMTVMTCPAARSC

Safety Costs/BenefitsSafety Costs/Benefits

The EDFS-53 Connection:The EDFS-53 Connection: Non-pecuniary amenities to households, which stimulates Non-pecuniary amenities to households, which stimulates

migration into or out of the region where the transportation migration into or out of the region where the transportation project is completed, depending upon whether the benefits project is completed, depending upon whether the benefits are net positive or negativeare net positive or negative

Fuel Tax ChangesFuel Tax Changes

OverviewOverview Change in fuel tax revenues proportional to change in Change in fuel tax revenues proportional to change in

gallons consumed, which can move two ways gallons consumed, which can move two ways following a road upgrade:following a road upgrade:

1)1) Incremental travel demand: gallons increaseIncremental travel demand: gallons increase

2)2) Higher average speeds of existing traffic: gallons Higher average speeds of existing traffic: gallons decreasedecrease

New or expanded public transit will induce substitution New or expanded public transit will induce substitution away from cars; magnitude of switch will determine away from cars; magnitude of switch will determine tax revenue changetax revenue change

Fuel Tax ChangesFuel Tax Changes

Overview of calculationOverview of calculation Fuel efficiency varies by average speed, which may Fuel efficiency varies by average speed, which may

increase due to transportation improvementincrease due to transportation improvement Changes in fuel tax revenue computed as follows:Changes in fuel tax revenue computed as follows:

……where:where:FRFRii = Change in fuel tax revenues for region i ($) = Change in fuel tax revenues for region i ($)

FTFTii = Fuel tax rate for region i ($/gallon) = Fuel tax rate for region i ($/gallon)

Avg(MPG) = Average fuel efficiency (miles/gallon)Avg(MPG) = Average fuel efficiency (miles/gallon)

VMTVMTaltalt = Vehicle miles traveled under the alternative scenario = Vehicle miles traveled under the alternative scenario

VMTVMTbasebase = Vehicle miles traveled under the baseline scenario = Vehicle miles traveled under the baseline scenario

)(*)(

1* basealtii VMTVMT

MPGAvgFTFR

Fuel Tax ChangesFuel Tax Changes

The EDFS-53 Connection:The EDFS-53 Connection: The policy variable effect can be tailored to the client’s The policy variable effect can be tailored to the client’s

specifications: say, a change in funds available for specifications: say, a change in funds available for government spending, or an adjustment to the model’s government spending, or an adjustment to the model’s fiscal balancing mechanismfiscal balancing mechanism

Commuter Cost SavingsCommuter Cost Savings Includes the following aspectsIncludes the following aspects

The amount of commuting cost saving for the entire The amount of commuting cost saving for the entire county or counties over the average work day.county or counties over the average work day.

• The value of commuting time is rated at half the The value of commuting time is rated at half the wage rate. wage rate.

• This is adjusted for VHT changes (from the travel This is adjusted for VHT changes (from the travel demand model), and based on average commuting demand model), and based on average commuting time time

– Source: Census for county commuting Source: Census for county commuting patternspatterns

Commuting CostsCommuting Costs

The EDFS-53 Connection:The EDFS-53 Connection:• Commuting costsCommuting costs affect the effective distance in the affect the effective distance in the

occupational labor access productivity equation (by occupational labor access productivity equation (by adjusting labor cost relative to the average wage rate), adjusting labor cost relative to the average wage rate), which feeds into industry labor access productivity and which feeds into industry labor access productivity and from there into composite wage ratesfrom there into composite wage rates

• This ultimately affects both the composite cost of This ultimately affects both the composite cost of production by industry and the relative wage rate in the production by industry and the relative wage rate in the economic migration equation.economic migration equation.

Transportation Cost SavingsTransportation Cost Savings

Includes the following aspectsIncludes the following aspects The cost savings in transporting goods and The cost savings in transporting goods and

services due to increase in transportation services due to increase in transportation efficiencyefficiency

These are calculated from changes in VMT These are calculated from changes in VMT and VHT between the alternative simulation and VHT between the alternative simulation and baseline controland baseline control

Source: Travel demand modelSource: Travel demand model

Transportation CostsTransportation Costs

The EDFS-53 Connection:The EDFS-53 Connection: • Transportation costsTransportation costs affect the effective distance in the affect the effective distance in the

delivered price equation for each sector (relative to time delivered price equation for each sector (relative to time and to wage rates, or only to time if wage rates are and to wage rates, or only to time if wage rates are unchanged), which feeds into the composite input cost unchanged), which feeds into the composite input cost equation to producers by sector and also into the equation to producers by sector and also into the consumption equation to consumers by commodityconsumption equation to consumers by commodity

• This ultimately affects both the composite cost of This ultimately affects both the composite cost of production by industry and the consumption access index production by industry and the consumption access index in the economic migration equation.in the economic migration equation.

Accessibility Cost SavingsAccessibility Cost Savings

Includes the following aspectsIncludes the following aspects Access to more diverse consumer goods and Access to more diverse consumer goods and

services by householdsservices by householdsThis affects economic migration by making a This affects economic migration by making a

region more or less attractiveregion more or less attractive Access to broader array of intermediate inputs by Access to broader array of intermediate inputs by

employersemployers Adjusted by changes in VMT and VHT between Adjusted by changes in VMT and VHT between

and within regionsand within regions

Accessibility CostsAccessibility Costs

The EDFS-53 Connection:The EDFS-53 Connection: • Accessibility costsAccessibility costs affect the effective distance in the affect the effective distance in the

intermediate input access index, which reflects a price intermediate input access index, which reflects a price elasticity of demand (price is sensitive to distance) and elasticity of demand (price is sensitive to distance) and which feeds into the moving average commodity access which feeds into the moving average commodity access index.index.

• The commodity access index feeds the composite input The commodity access index feeds the composite input cost equation and the consumer access equation, ultimately cost equation and the consumer access equation, ultimately affecting both the composite cost of production by industry affecting both the composite cost of production by industry and the consumption access index in the economic and the consumption access index in the economic migration equation.migration equation.

Choose which results to view, and options, e.g., charts, tables, etc.

Choose report options

Viewing the results, and the total economic effects:

Total and private non-agricultural employment rises…

Employment rises…

…delivered prices fall…

…industry production costs fall…

…business and consumer access to commodities rises (red line)…

…industries have access to a larger and more diverse labor force…

…and Gross Regional Product rises.

Why Why REMI TranSightREMI TranSight?? Integrating transportation with economic and fiscal simulation models requires Integrating transportation with economic and fiscal simulation models requires

a sound theoretical basis.a sound theoretical basis.

REMI models are structurally complete, and built upon widely accepted REMI models are structurally complete, and built upon widely accepted economic theory published in rigorously refereed academic journal articles.economic theory published in rigorously refereed academic journal articles.

Yet the economic theory behind Yet the economic theory behind REMI TranSightREMI TranSight is accessible to any is accessible to any thoughtful person. thoughtful person.

Why Why REMI TranSightREMI TranSight??REMI has been involved in transportation planning for years. Below, a few REMI has been involved in transportation planning for years. Below, a few examples (papers available upon request):examples (papers available upon request):

An Evolutionary New Economic Geography Model”;An Evolutionary New Economic Geography Model”; Wei Fan, Department of Wei Fan, Department of Economics, University of Michigan, Ann Arbor; Frederick Treyz and George Treyz, Economics, University of Michigan, Ann Arbor; Frederick Treyz and George Treyz, Regional Economic Models, Inc; Regional Economic Models, Inc; Journal of Regional ScienceJournal of Regional Science, Vol 40, No. 4, 2000 pp. , Vol 40, No. 4, 2000 pp. 671-695.671-695.

““Monopolistic Competition Estimates of Interregional Trade Flows in Services”, Monopolistic Competition Estimates of Interregional Trade Flows in Services”, Frederick Treyz and Jim Bumgardner; Frederick Treyz and Jim Bumgardner; Regional Cohesion and Competition in the Age of Regional Cohesion and Competition in the Age of GlobalizationGlobalization, , June 2000.June 2000.

““Productivity and Accessibility: Bridging Project-Specific and Macroeconomic Analyses Productivity and Accessibility: Bridging Project-Specific and Macroeconomic Analyses of Transportation Investmentsof Transportation Investments”, ”, Glen Weisbrod and Frederick Treyz; Glen Weisbrod and Frederick Treyz; Journal of Journal of Transportation And StatisticsTransportation And Statistics , Vol. 1, No. 3, October 1998., Vol. 1, No. 3, October 1998.

““NCHRP NCHRP Report 463: Economic Implications of CongestionReport 463: Economic Implications of Congestion”;”; Glen Weisbrod, Donald Glen Weisbrod, Donald Vary, George Treyz; Transportation Research Board – National Research Council; 2001.Vary, George Treyz; Transportation Research Board – National Research Council; 2001.