Modeling the Regional Economic Impacts of Policies and Investments
REACT is an input-output modeling tool that enables our clients and partners to deliver a high-quality, comprehensive and tailored quantitative assessment of how local and regional economies will react to changes in policy, investment, or industry activity.
The model is a cost effective option for collaborators and clients to efficiently and accurately conduct impact studies and can estimate direct, indirect, induced and total economic impacts for a wide range of policy, investment and industry initiatives and scenarios.
Designed for both in-house use by Cambridge Econometrics and for collaborators and clients to conduct their own impact studies, REACT offers new insights on the ever-changing and complex landscape of US economic policy.
Economic Impacts Assessments with REACT
REACT builds on Cambridge Econometrics’ 40 years of regional economic modeling expertise to develop a world-class, cost effective input-output economic impact tool, with an integrated framework of employment, income (wages), output and value added by detailed industry sector.
The model generates results on the supply chain / intermediate impacts (known as indirect) and the effects of the re-spending of wages and income (known as induced) to estimate total economic impacts (known as multiplier effects). It can also estimate state-level tax revenue impacts.
Key Benefits
| Reliable and accurate insights | Built from the latest US Bureau of Economic Analysis (BEA) and US Bureau of Labor Statistics (BLS) input-output and GDP data |
| Granular and localized analysis | Customized with detailed, up-to-date industry employment and wage data at the county level from data-Fab |
| Broad and comprehensive industry scope | Coverage of 166 different sectors |
| A holistic approach | Integrated model system built on sectoral relationships and interactions |
| Customizable application | Regions can be configured for any combination of counties, metro areas, or states |
| Versatile across industries and sectors | Designed for a wide range of applications including construction or development projects, new or expanded industries, tourism and visitation studies, economic contributions of industries, etc. |
Learn more about the Regional Economic Analysis and Change Tool