There are growing needs to develop and apply decision support tools that facilitate broader, more informed public participation and interest groups in regional level. Also, there are growing demands for greater accountability-the ability to monitor progress toward a community’s stated goals and to evaluate the desirability of chosen goals over alternatives.
In this paper we study a regional economic model that has been developed in the U.S.A. for the purpose of applying such a model to the Korean regional economy.
For the purpose of the study, we review three popular approaches of structural modeling in national and regional economy: computable general equilibrium(CGE), input-output(I-O), and econometric models. In addition, we survey several regional economic models and their application procedures that have been developed for supporting decision making of regional and community level in the U.S.A. They are the IMPLAN model as an input-output analysis tool, a show-me model as a regional economatric model, SEBAS as the socio-economic benefit assessment model, and REMI as an integrated input-output, CGE, and econometric model.
In conclusion, the study suggests that the data related to individual household income and expenditure has to be scrutinized and updated to apply a regional model in Korea. Nonetheless, it is necessary to put efforts to establish an analytic model with any given data set.