Emsi’s input-output model, powered by a multi-regional social accounting matrix, is the engine behind several key features within Analyst and Developer. Until now, Emsi has relied on the standard method for estimating taxes, profits, and subsidies at the state and county level—which is achieved by applying national coefficients to state and county earnings.
Moving forward, Emsi’s I-O model will feature updated methodology that brings unparalleled granularity and accuracy to I-O scenarios run in the US. Effective with the now beta-released 2016.1 Class of Worker dataset, the I-O model has made the switch to rely on gross state product to calculate sales figures.
What does this mean for Analyst and Developer users? In short, improved accuracy in regionalized data that is now fully consistent with published totals at both the state and national level.
While this shift in methodology directly affects sales figures, the impact of this newfound accuracy ripples out to other facets of the economy: GRP, imports, exports, and multipliers, to name a few. As a result, Emsi’s I-O model is more accurate across the board.
Existing I-O users will notice that all I-O data points, except for earnings, will change from previously generated scenarios. The weight of those changes will vary by region, but in all cases will be a more accurate representation of your economy.
This change in methodology provides a groundbreaking opportunity for our clients to better understand the effects of job loss and creation, changes in supply chain, and the other notable events within their economy.
To learn more about our I-O model and view the full technical documentation, reference our previous blog post.