In 1989, after several years of discussion and negotiation, the Regional Econornics Applications Laboratory (REAL) was formed. This unique relationship between the Federal Reserve Bank of Chicago and the University of Illinois at Urbana-Champaign has been a significant source of intellectual inspiration for many students, visiting colleagues and members of the participating institutions for the past decade. The idea for REAL was hatched by Philip Israilevich and Geoffrey Hewings in typical Chicago style - in the back room of a local bar. In early December 1997, their collaboration came to an...