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.
Pandemic influenza has become a serious global health concern; in response, governments around the world have allocated increasing funds to containment of public health threats from this disease. Pandemic influenza is also recognized to have serious economic implications, causing illness and absence that reduces worker productivity and economic output and, through mortality, robs nations of their most valuable assets - human resources. This paper reports two studies that investigate both the short- and long-term economic implications of a pandemic flu outbreak. Policy makers can use the growing number of economic impact estimates to decide how much to spend to combat the pandemic influenza outbreaks. Experts recognize that pandemic influenza has serious global economic implications. The illness causes absenteeism, reduced worker productivity, and therefore reduced economic output. This, combined with the associated mortality rate, robs nations of valuable human resources. Policy makers can use economic impact estimates to decide how much to spend to combat the pandemic influenza outbreaks. In this paper economists examine two studies which investigate both the short- and long-term economic implications of a pandemic influenza outbreak. Resulting policy implications are also discussed. The research uses the Regional Economic Modeling, Inc. (REMI) Policy Insight + Model. This model provides a dynamic, regional, North America Industrial Classification System (NAICS) industry-structured framework for forecasting. It is supported by a population dynamics model that is well-adapted to investigating macro-economic implications of pandemic influenza, including possible demand side effects. The studies reported in this paper exercise all of these capabilities.