USC Price Researchers Win First REMI Outstanding Economic Analysis Award
The USC Price School of Public Policy’s Noah Dormady, Adam Rose and Dan Wei in October received the first Outstanding Economic Analysis Award from Regional Economic Models, Inc. (REMI).
The award was given in recognition of their paper, “Regional macroeconomic assessment of the Pennsylvania Climate Action Plan,” published in the November 2011 issue of the journal, Regional Science: Policy and Practice.
Dormady, a recent Price Ph.D. graduate, is now an associate professor at Ohio State University’ s Glenn School of Public Affairs; Rose is a research professor at the Price School and coordinator for economics at the CREATE Homeland Security Center; and Wei is a research assistant professor at USC Price.
The REMI model is the most widely used commercially provided regional macroeconometric model in the nation, Rose explained. It is used by government agencies in every U.S. state to undertake economic forecasting and policy simulation, and also by industry, public interest groups and trade associations.
“Essentially, this was a culmination of several years of research for which we refined the state-of-the-art methodology for the application of the REMI Policy Insight Plus Model to this issue in several states,” Rose said. “Moreover, in this paper, we developed a method for validating the results of application of the model.”
The award citation notes how the study made three major contributions representing excellence in economic analysis and in the use of REMI models:
- First, it represents an innovative application of the REMI PI+ Model. It is the culmination of three years of methodological development and refinement to apply the model to the analysis of the total regional macroeconomic impacts of climate action plans. The authors have developed a comprehensive methodology that involves the one of most advanced uses of the model and have developed further extensions to fill in important gaps for various applications.
- Second, the study provides a methodology for the validation of REMI Model results. The authors performed sophisticated regression analyses to test the effects of key explanatory variables on gross state product and employment. They found that those variables are able to explain a major portion of the variance in independent variables, thereby demonstrating the consistency of REMI results.
- Third, the methodology and application are of great practical use. This study contributed to the economic evaluation of the PA Climate Action Plan. Similar studies by the senior authors have also contributed to the design of executive orders or legislation on climate action planning in Florida, Michigan, Wisconsin, New York, New Mexico, and California.