LPC in household income


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    IMPLAN Support
    Hello Jacklyn, The Local Purchase Percentage (LPP)/Local Purchase Coefficient (LPC) field is used to limit the amount of your input value that is applied to the multipliers. 100% means that the entirety of the value is applied to the multipliers. Set to user LPC lets you modify the value to your known value. The Set to SAM feature is not available for use with a Household Income Change. Set to SAM sets the LPP/LPC to the average Regional Purchasing Coefficient (RPC) value for the commodity in question. It is most commonly used when margining producers. You can see more about the use of LPP in the link below. Using the Local Purchase Percentage Field http://support.implan.com/index.php?option=com_content&view=article&id=469 More importantly, from the description of your study you do not want to use LPP/LPC to affect how much spending is taking place in your region. In a Household Income Change, the input amount represents how much income is being received in the region, not how much is spent in the region. From that value, taxes and savings are removed. The remaining value is spent on commodities based on the specific household's spending pattern. How much is bought locally is determined by the individual commodity RPCs. What is not purchased locally is considered imported, at which point the MRIO process then determines what of the imports is purchased from the connected model regions. Regards, IMPLAN Staff
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