Leakage Questions

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    Doug Olson
    Correct. The impacts for any model you build reflects leakages caused by imports into the region the model represents. All impacts reported for a model only represent economic activity for the modeled region. MRIO modeling allows you to model regions linked to the original region. If any imports to the original region are sourced in the linked region, then that demand will cause an impact on the linked region. There is a further possibility that the linked region as a result of its impacts will import from the original region causing further impacts on the original region. The software only allows MRIO linking to other US states and counties and not to other countries.
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    Al Goyburu
    I have a follow-up question to this. I think it would be best answered by furnishing or walking through an example. Assume the sector is 376, Scientific r & d services. I want to estimate the economic impact of a direct employment increase in Sector 376 in County X. This is a "normal" jobs increase case in that a direct effect will be seen among both establishments and single proprietorships. Also I am not deviating from IMPLAN's employee compensation assumptions. Make it 100 jobs, with no available information on where these workers reside. 1) a) When setting up this analysis, do I need to do anything special to incorporate IMPLAN's estimate for the share of these direct jobs held by folks that reside in the county? b) Or is that leakage already built into the model? c) If that leakage IS built in, how would I identify its magnitude for a given region+sector? d) Or is there only a single labor leakage quantity for the region? 2) a) Do I need to do anything special to incorporate IMPLAN's estimate for share of county resident workers for NON-directly impacted sectors? b) Or is that leakage built into the model? 3)Now suppose I DID have my own estimate for the share of those 100 direct jobs that would be held by a county resident, how would I incorporate that estimate into my analysis? Thanks. Al
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    Jenny Thorvaldson
    You should find this forum discussion helpful: http://implan.com/v4/index.php?option=com_kunena&func=view&catid=80&id=11509&Itemid=35#11515 Note: direct employment is merely descriptive, in the sense that it does not drive further impacts. It is the labor income that drives the induced effects.
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