Using SAM vs LPP100% in construction


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    IMPLAN Support
    Hello Fabrizio, To your first question: Local Purchase Percentage (LPP) represents the portion of the Direct Effect that takes place within the study region. If the entirety of your Direct takes place within the study region, then your LPP should be set to 100%. Most analysts determine their inputs based on the study region; therefore, the default LPP is 100%. The rates at which an industry purchases intermediate inputs locally are determined by the Regional Purchasing Coefficients (RPCs) for each commodity. These will automatically be applied. You can find more about using Local Purchase Percentage at the link below: Using the Local Purchase Percentage Field. To your second question: In IMPLAN, employees are assumed to spend their income where they live. Therefore, all employee spending will be within your study region unless your region has net in-commuting. You can check for net in-commuting by navigating to Model Overview > Social Accounts > IxC Social Accounting Matrix and looking for a value in the Employee Compensation column's payment to the Domestic Trade row. If there is no value, then your region is not net in-commuting. If there is a value, then some of the Employee Compensation earned in the region is leaked to account for in-commuters. You can adjust your study values to increase, decrease, or remove (in your case) any value lost to in-commuting by following the instructions in the article below. Estimating Employee Compensation Adjustment for Known Commuting Rates Regards, IMPLAN Staff
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