The Washington Projection and Simulation Model: A Regional Interindustry Econometric Model

Abstract

Originally built in 1977, the Washington Projection and Simulation Model (WPSM) is a regional interindustry econometric model designed for forecasting and impact analysis. This article describes the most recent formulation of WPSM, analyzes the accuracy of the long-range forecasts prepared with the original model in 1976, and evaluates the model's simulation properties. The experience of developing and applying WPSM over the past ten years provides a basis for assessing the relative merits of this seldomly followed approach to regional economic modeling.