Multipliers

INTRODUCTION:

Multipliers are the total production impact within the Study Area for every unit of direct production. Total production will vary depending on the method of inclusion (whether the Induced Effects are included or not). There are four (4) Multiplier View By Options: Output, Employment, Labor Income, and the components of Value Added: Employee Compensation, Proprietor Income, Other Property Income, and Tax on Production and Imports.

The calculations or method of inclusion used to create Type I and Type SAM Multipliers are shown below:

     Type I Multiplier = (Direct Effect + Indirect Effect) / (Direct Effect)

     Type SAM Multiplier = (Direct Effect + Indirect Effect + Induced Effect) / (Direct Effect)

SUMMARY MULTIPLIERS:

1. Output - The Output Multiplier describes the total Output generated as a result of 1 dollar of Output in the target industry. Thus if an Output Multiplier is 2.25, that means that for every dollar of production in this Industry $2.25 of activity is generated in the local economy: the original dollar and an additional $1.25.
2. Employment - Employment Multipliers describe the total jobs generated as a result of 1 job in the target industry. Thus if an Employment Multiplier is 2.33, that means that every Direct Job creates 2.33 jobs in the total economy: the original job and 1.33 additional jobs.
3. Labor Income - Labor Income Multipliers describes the total dollars of Labor Income generated as a result of one dollar of Labor Income in the target Industry. A Labor Income Multiplier of 2.2 indicates that for every dollar of Direct Labor Income in this Industry another $1.20 of Labor Income is generated in the local economy.
4. Employee Compensation - Employee Compensation Multipliers describe the total dollars of Employee Compensation generated as a result of one dollar of Employee Compensation in the target Industry. A Employee Compensation Multiplier of 2.3 indicates that for every dollar of Direct Employee Compensation in this Industry another $1.30 of Value Added is generated in the local economy.
5. Proprietor Income - Proprietor Income Multipliers describe the total dollars of Proprietor Income generated as a result of one dollar of Value Added in the target Industry. A Proprietor Income Multiplier of 1.5 indicates that for every dollar of Direct Proprietor Income in this Industry another $0.50 of Proprietor Income is generated in the local economy.
6. Other Property Income - Other Property Income Multipliers describe the total dollars of Other Property Income generated as a result of one dollar of Other Property Income in the target Industry. A Other Property Income Multiplier of 2.3 indicates that for every dollar of Direct Other Property Income in this Industry another $1.30 of Other Property Income is generated in the local economy.
7. Tax on Production and Imports - Tax on Production and Imports Multipliers describe the total dollars of Tax on Production and Imports generated as a result of one dollar of Tax on Production and Imports in the target Industry. A Tax on Production and Imports Multiplier of 1.2 indicates that for every dollar of Direct Tax on Production and Imports in this Industry another $0.20 of Tax on Production and Imports is generated in the local economy.

DETAIL MULTIPLIERS:

The Detail Multiplier view breaks down each Multiplier by: Type I, Induced, and Type SAM for each view by: Output, Employment, Labor Income, and the components of Value Added: Employee Compensation, Proprietor Income, Other Property Income, Tax on Production and Imports as they are applied to Industry x Industry Input/Output transactions. Select an Industry Sector from the drop down menu to see updated total values for Type I, Induced, and Type SAM Multipliers for the selected industry. 

     Type I Multiplier = (Direct Effect + Indirect Effect) / (Direct Effect)

     Type SAM Multiplier = (Direct Effect + Indirect Effect + Induced Effect) / (Direct Effect)

     Induced Multiplier = Type SAM Multiplier - Type I Multiplier

In the Regions Multipliers Detail, the default Industry or Commodity is always Oilseeds.  In order to see the Industry or Commodity of interest, click the Filter button and choose the appropriate Sector.  Click Run to have the model filter for that Sector.

1. Output - The Detailed Output Multipliers describe the Output generated in a given industry as a result of 1 dollar of Output in the target industry. 
2. Employment - The Detailed Employment Multipliers describe the jobs generated in a given industry as a result of 1 job in the target industry. 
3. Labor Income - The Detailed Labor Income Multipliers describes the dollars of Labor Income generated in a given industry as a result of one dollar of Labor Income in the target Industry.
4. Employee Compensation - The Detailed Employee Compensation Multipliers describe the dollars of Employee Compensation generated in a given industry as a result of one dollar of Employee Compensation in the target Industry.
5. Proprietor Income - The Detailed Proprietor Income Multipliers describe the dollars of Proprietor Income generated in a given industry as a result of one dollar of Value Added in the target Industry. 
6. Other Property Income - The Detailed Other Property Income Multipliers describe the dollars of Other Property Income generated in a given industry as a result of one dollar of Other Property Income in the target Industry.
7. Tax on Production and Imports - The Detailed Tax on Production and Imports Multipliers describe the dollars of Tax on Production and Imports generated in a given industry as a result of one dollar of Tax on Production and Imports in the target Industry. 

All Detailed Multipliers of a target Industry sum to the corresponding Summary Multiplier for that target Industry.

SORTING:

The title bar displayed across the top of each Study Area View By contains buttons that can change the viewing attributes of the table. The bar shown is for Output Multipliers.

Most column titles act as sorting buttons. Initially most views are sorted by Sector code in ascending value (first row is 0 last row is 546). To change the way all fields in the table are arranged, click on the title of the desired column. All data in the table will be sorted in descending order (highest values listed at the top of the table) relative to the column title. To change how the data is sorted, click on another field. When the view has been sorted by a column other than Industry Code, the selected column title will appear with an arrow to its right indicating that the table has been sorted by this column header.

DOWNLOADING:

The export function allows data to be exported directly to a PDF or CSV file by clicking on the gear icon.

Written October 10, 2019