Measuring consumer surplus?


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    IMPLAN Support
    Hello Janice, Thank you for your Forum post. Yes, you are right, IMPLAN is a static input/output model and does not take into consideration associated price and welfare changes that come with a change in production. Economic impact analysis looks backwards rather than forwards through the economy. In other words, to determine the effect of increased production in a local industry, economic analysis looks at the industries which supply the producing industry with the items and services for its production. From my understanding, you are looking more at the forward linkages which include price and welfare (consumer/producer surplus) changes. However, if you are comfortable in translating the increase in supply/price outside of the model and bringing in total output or total sales number to the software, you may use IMPLAN. It would need additional ground work on the part of the analyst but this could be done using IMPLAN. Key assumptions of the IMPLAN model can be found here- You may want to take a look at the article attached as it talks more about IMPLAN, its abilities and inabilities in a more comprehensive and robust manner. Please let us know if you have any other questions. Regards, IMPLAN Staff
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