Ed. Note: This is cross-posted from the Bureau of Economic Analysis's blog. It highlights the coordination and collaboration between BEA and NOAA to bring value in data and services to the American public.
How many jobs are created from the construction of a new bridge or an increase in tourism?
The Bureau of Economic Analysisâ€™ (BEA) new Web portal on the ocean and Great Lakes economy shows how the Bureauâ€™s Regional Input-Output Modeling System (RIMS II) can be used to provide answers to such questions. The new Web site stems from a joint project with the Commerce Departmentâ€™s National Oceanic and Atmospheric Administration.
RIMS II, a regional economic model, is used by investors, planners, and elected officials to objectively assess the returns to projects ranging from a new sports stadium to a new bridge. The returns include the short- and long-term increases in jobs and spending associated with the projects.
The idea behind the results of RIMS II is that an initial change in economic activity leads to additional changes in economic activity in other parts of an economyâ€”for example, building a new bridge leads to increased production of concrete and steel. The increased production of concrete and steel leads to more mining. Workers benefiting from these increases may also enjoy bigger paychecks, so they may then spend more by eating out at nicer restaurants or splurging more on entertainment.