Publications

Regional Economic Accounting (REAcct). A software tool for rapidly approximating economic impacts

Ehlen, Mark E.; Starks, Shirley J.

This paper describes the Regional Economic Accounting (REAcct) analysis tool that has been in use for the last 5 years to rapidly estimate approximate economic impacts for disruptions due to natural or manmade events. It is based on and derived from the well-known and extensively documented input-output modeling technique initially presented by Leontief and more recently further developed by numerous contributors. REAcct provides county-level economic impact estimates in terms of gross domestic product (GDP) and employment for any area in the United States. The process for using REAcct incorporates geospatial computational tools and site-specific economic data, permitting the identification of geographic impact zones that allow differential magnitude and duration estimates to be specified for regions affected by a simulated or actual event. Using these data as input to REAcct, the number of employees for 39 directly affected economic sectors (including 37 industry production sectors and 2 government sectors) are calculated and aggregated to provide direct impact estimates. Indirect estimates are then calculated using Regional Input-Output Modeling System (RIMS II) multipliers. The interdependent relationships between critical infrastructures, industries, and markets are captured by the relationships embedded in the inputoutput modeling structure.