I am planning to do contribution analysis of forest related industry using county data in Texas. I need to do analysis for some counties (say 43), a region (sum of 43 county), and State as a whole. Obvious approach comes into mind is MRIO analysis. As we know, MRIO is rather complex and requires careful attention to avoid double counting. Therefore, I am planning to do it following the underpinnings of MRIO but rather differently (mathematically). Following approach comes into mind. A. Obtain overall economic contribution in entire Texas following multi-industry contribution analysis. B. Obtain overall economic contribution in region (43 county) following multi-industry analysis. C. Obtain overall economic contribution in other than region B (All county in Texas-43 county) following multi-industry analysis. D. Obtain overall economic contribution in each 43 county (one at a time) following multi-industry contribution analysis. Steps for my analysis: Step 1. While, result summing B and C ( let's say z) should equal A, it will be less than A. It is because B and C don't capture cross region inter-industry trade. Therefore, I want to proportionate this difference (A-z) equally between B and C and get revised value for B and C. Step 2. I will sum all the value from D. This will also be less than initial value of B for the same region. Again county sum won’t capture inter-industry trade between counties. Step 3. Now obtain the value of B from Step 1 and get adjusted value for each county depending upon their respective share in the region. The reason I want to do in this way is because I can utilize final county values to obtain economic impacts for other political bounties (such as state senate, which IMPLAN does not have separate data). After this analysis, my math suggests that if I will sum all the counties, it will equal to the value of region. Similarly, sum of region B (revised) and region C(revised) will equal to total state value A. I am curious to know whether my thought process is making sense. Do you have any suggestions? Thanks, Omkar
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