The Regional Matrix (Z Matrix) is an 1800 by 1800 matrix that describes the spending from one sector of the regional economy to the other. It is part of the foundation for Input-Output Modeling. Emsi’s Input-Output model goes above and beyond the usual I-O model in that Emsi also models the changes to Occupations and Demographics. For further explanation, we recommend reading the Input-Output documentation available here.
Source: The Regional Matrix is primarily based on Emsi’s proprietary data and data from the Bureau of Economic Analysis (BEA).