Direct output larger than original inputs

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Alex

• January 23, 2017 22:39

I have a fairly complex model with multiple inputs including Industry change activities and industry spending pattern activities. I understand that spending pattern activities only produce indirect and induced effects but if added to the overall output (for direct effect) after the analysis should they sum up the same as the original inputs? If not, why is that? If I take out the spending pattern activities the total inputs match the total direct output.

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  IMPLAN Forum

  • January 24, 2017 14:19

  Hi Alex! Thank you for your forum post! Please let me know if I am misunderstanding your question. From your post, it sounds as if you are asking if the Indirect and Induced impacts can be added to obtain the Direct Impacts. It will not have the desired effect of generating the Direct Impact. This is because the spending pattern reflects the first round in indirect purchases. Therefore, by definition the spending pattern cannot generate direct effects, as it is a result of indirect spending. You can however, export your results to Excel and add back in your Direct values, (Direct Employment, Direct Value Added, Direct Output and Direct Labor Income). Then add down the columns to get your Total Values. Building and Using an Industry Spending Pattern: http://support.implan.com/index.php?option=com_content&view=article&layout=edit&id=387

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