Moving forward, Emsi’s I-O model will feature updated methodology that brings unparalleled granularity and accuracy to I-O scenarios run in the US. Effective with the now beta-released 2016.1 Class of Worker dataset, the I-O model has made the switch to rely on gross state product to calculate sales figures.
What does this mean for Analyst and Developer users? In short, improved accuracy in regionalized data that is now fully consistent with published totals at both the state and national level.
While this shift in methodology directly affects sales figures, the impact of this newfound accuracy ripples out to other facets of the economy: GRP, imports, exports, and multipliers, to name a few. As a result, Emsi’s I-O model is more accurate across the board.
Below is a brief excerpt of the methodology behind this change, but the full breakdown can be found in the Emsi Input-Output Documentation.
“State level calculations are a vital step in the process of calculating county data. The standard method for estimating taxes, profits, and subsidies at the state and county level is to apply national coefficients to state and county earnings. Because the BEA publishes GSP component totals for each state, however, Emsi can use these to control the state values created through the application of national coefficients. This produces more accurate state level data which is used in turn to derive more accurate county data, while keeping the overall totals consistent with the national model.”