Asking about how to construct multipliers for MRIO

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Gimel Israel

• February 02, 2012 20:12

Hi, for the last several days, I have been using MRIO features in IMPLAN. Questions coming up are: 1. How to produce multipliers for MRIO analysis (not a single region) such as employment multipliers, output multipliers as well as type I and type SAM multipliers. 2. What is basically the difference between trade flows approach and RPC econometric approach Thank you very much Best, Gimel Israel

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  Jenny Thorvaldson

  • February 02, 2012 21:41

  1. I will refer you back to this post: http://implan.com/v4/index.php?option=com_kunena&func=view&catid=81&id=11454&Itemid=35#11456 2. This paper describes the tradeflow method: http://implan.com/V4/index.php?option=com_docman&task=doc_download&gid=138&Itemid=7 The first paper in this document describes the econometric method and our plans to update it: http://implan.com/v4/media/kunena/attachments/141/MCRSA%202011%20Conference%20Proceedings.pdf

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  Gimel Israel

  • February 03, 2012 03:02

  Thanks for your quick answer. When I looked at the result from MRIO analysis, many of the direct effects are basically zero, so how can I divide something to zero? Sorry my question is very basic, I guess I confuse myself looking at the result of the detailed one in scenario result.

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  Jenny Thorvaldson

  • February 03, 2012 03:15

  For each sector, sum the impacts for the two study areas and calculate the MRIO multiplier as follows: Direct Effect in region A + Direct Effect in region B = MRIO Direct Effect Total Effect in region A + Total Effect in region B = MRIO Total Effect MRIO multiplier = (MRIO Total Effect)/(MRIO Direct Effect) Note: the Direct Effects in region B are obviously all zeros, so the MRIO Direct Effect = Direct Effect in region A. Note: if you want an MRIO multiplier for every sector, then you will need to run an impact on every sector.

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  Gimel Israel

  • February 03, 2012 08:36

  Jenny thanks for the answer, but I feel a little weird that if I want each sector MRIO multipliers then I have to run each sector impact which means I have to run 440 times IMPLAN to have all full MRIO multipliers. Are there any other easier ways to do that?

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  Gimel Israel

  • February 03, 2012 14:03

  Jenny, I have another problem too. When I looked at the result of MRIO scenario say for region A linked to region B with the shocks coming from region A. When I compared the result of single region and multi region impacts of direct, indirect and induced effect, there are only very small differences which can be neglectible. Why it seems the MRIO effect in comparison to a single region effect looks just the same say for region A impact, the effect from a single region approach is pretty much the same with the effect of multi region approach. Is it the way it should be or something wrong with IMPLAN? Best, Gimel

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  Jenny Thorvaldson

  • February 03, 2012 21:55

  I'm sorry Gimel, but they will need to be run one at a time.

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