Total Output Leakage


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    IMPLAN Forum
    Hi Helen! Thank you for your post. To address your first question, you are correct. The final Total Output and job impacts will be the total impacts in the study area region. IMPLAN is only able to capture the impacts that occur in the region of the Model, this also goes hand in hand with LPP (Local Purchase Percentage). This is the % of the impact that is occurring in your Study Region. In regards to your 2nd question. IMPLAN does not have a clean cut way to look at the leakages in the Model. However the pathway you were referring to: Social Accounts > Balance Sheets > Industry Balance Sheet > Commodity Demand; you can extrapolate some information from there. The Gross Absorption is the % of how much you need for a particular commodity to make that Industry's production. The Regional Absorption is the % of what can be found in the Study Region. For example; if commodity 3154 (Printed Materials) has a Regional Absorption of 3% then 97% would need to be imported into the region. However that will only tell you what Commodities need to be Imported and therefore this region can not take credit for the production. In addition it only shows the first-round Intermediate Expenditures, which misses the Induced impact but also the successive rounds of Indirect spending. The most practical way to try to calculate it would be to calculate the impact again using an alternative method/approximate way of calculating multipliers called the "Power Series Method" that can be done in Excel and that shows each round. Most studies have found that most impacts happen by around the 8th round. This would still require hand work but is more automated than a sector-by-sector multiplication by detail Multipliers. If you have access to "Input-Output Analysis Foundations and Extensions" by Miller and Blair it is described nicely there (pgs 31-34 in the Second Edition of the book). It is briefly described in the document attached to this post. [attachment=653]h4def2b1.pdf[/attachment]
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