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R/ECON™ I-O: An Economic Impact Model

Technology #2017-083

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Michael Lahr
Research Professor, Director Rutgers Economic Advisory Service (R/ECON™), Visiting Research Fellow; Institute for International Economics, Business, & Management; University of Groningen
External Link (
Will Irving
Senior Project Manager and Economic Analyst, Edward J. Bloustein School of Planning and Public Policy, Rutgers University
Managed By
Andrea Dick
Associate Director, Licensing 848-932-4018

The R/ECON™ Input-Output Model (I-O) shows how sectors of an economy interact. For a given industry, the model shows the “production recipe” for the goods and services the industry sells and the shares of its revenues that are consumed by other industries in the economy.


The R/ECON™ I-O model’s generates estimates of interregional trade by sector that are based on those conceived by the Regional Science Research Institute.  Those estimates are recognized by the academic community as the most reliable estimates available.

R/ECON™ can customize models for any state, metropolitan area, county, or set of counties for which detailed data on employment and payroll are publicly available or provided by the client.

The R/ECON™ I-O model can be used to:
  • Estimate the number of jobs and the amount of income that will be created in an economy by an event or shock
  • Determine an event’s, an industry’s, or a program’s total contribution to an economy
  • Calculate the fiscal viability of a proposed economic development incentive
  • Estimate the economic impact of the relocation of a firm or industry
  • Help identify successful state and local economic development strategies
  • Determine the relative economic viability of large projects
  • Show how changes in one sector of the economy influence other sectors
  • Identify the impact of a project on various government spending programs, and vice versa


The I-O model can be used in many different settings; for example, academic, by consultants, in businesses and corporations, government, and nonprofits.  It can be used when there is a need for information or analysis for economic development or marketing decision making purposes.

Previous Impact Studies

New Jersey’s Military and Coast Guard Facilities

The Contribution of the Casino Hotel Industry to New Jersey’s Economy

Intellectual Property & Development Status:

Available through license or distribution agreement.

For Information about licensing contact:  Will Irving