november 12, 2003

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SWOSU using REMI to provide data for Oklahoma businesses

Southwestern Oklahoma State University's Center for Economic and Business Development at Weatherford has an impressive economic modeling tool available that provides economic impact data for the state of Oklahoma and six substate regions.

SWOSU is using the Regional Economic Models, Inc. (REMI) software to measure the economic impact of a given situation in a region. SWOSU is the only entity in Oklahoma that has a statewide model and, as a result, university research analysts Jon Chiappe and Stephen Nelson have been working with organizations across the state of Oklahoma to analyze the economic impact data provided by the REMI model.

There are four primary scenarios that SWOSU is focusing on with the model including economic impact, counterfactual, policy and tourism impact modeling:

*Economic impact modeling predicts the economic effects upon a regional or state economy of a new business location or a new project venture. For example, the modeling would give the economic impact on northeast Oklahoma if a company was thinking about spending $25 million to expand its operations in Stillwater.

*In counterfactual modeling, the CEBD would model the effect upon a regional or state economy by removing an organization or business from the economy. For example, the center could determine the effect upon Oklahoma if Tinker Air Force Base was closed in a new round of base closures.

*Policy modeling predicts the economic impact of a significant policy change upon a regional or state economy. Examples of policy changes that could be modeled include tax rate changes, minimum wage rate changes or environmental standards change.

*Tourism impact simulations are modeled as the increase in tourism to an area due to new/expanded tourist attractions. An example would be determining the impacts of tourism along Route 66 upon the state of Oklahoma.

The REMI model is divided into six substate regions including northwest Oklahoma, northeast Oklahoma, Tulsa area, Oklahoma City area, southeast Oklahoma and southwest Oklahoma. The REMI is also divided into 53 industrial sectors. For every economic impact scenario, the model will delineate the economic impacts upon each of the 53 sectors.

Contact: Jon Chiappe at 1-580-774-3095 or visit the SWOSU website at www.swosu.edu/bdc.