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to an equilibrium. The diagram below depicts the organization of the REMI regional model in <br /> terms of the major blocks functioning in an economy and the arrows denote the feedback <br /> accounted for. Keep in mind this portrayal is at a very high-level, sparing the industry-specific <br /> details. Scenario specific changes are inserted through policy variable levers into the appropriate <br /> block of the model. There is another important dimension of economic response for the key <br /> region-of-impact that effectively layers on top of the below diagram—interactions with another <br /> regional economy. That additional region-rest of California -was explicitly modeled at the <br /> same time. The REMI model captures the flows of monetized goods and services, and commuter <br /> labor between regions when one(or both) is shocked by introduction of a CCA. <br /> Core Logic of the REMI Model <br /> Investmenttied to new <br /> technologies <br /> Output <br /> r. <br /> Population & Labor Market <br /> Supply Labor & Capital Demand Shares <br /> 0, ro_ _ <br /> y ' } , <br /> al <br /> l <br /> • <br /> iL ;1 n i <br /> Wages, Prices, &Profits <br /> C ` <br /> r Electric 8 other <br /> +�` f energy prices <br /> E- 13 <br />