Definition of direct effects

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    IMPLAN Support
    Hi Leslie- True retail margins require thought. Technically, direct affects are what are applied to the multipliers, so the margined/locally produced values are the direct effects. However, most clients would view the total purchase value as the direct effect – ie, it is what caused the economic activity. The best solution is to tell the story – eg, tourists spent $10,000,000 to purchase gifts and souvenirs requiring 100 jobs and a payroll of 1,000,000 in the retail sector. This also caused an additional (non-retail direct plus indirect plus induced) xxx jobs and xxx income in the rest of the local economy. This avoids any confusion about direct, indirect and induced definitions. Thank you.
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    lgenova
    HI, Sorry, just wanted to clarify your answer. Indeed, I do have clients that view total retail purchase as the "direct effect." In your example, when you say purchases "requiring 100 jobs and a payroll of 1,000,000 in the retail sector" --that would be based on the [b]margined [/b]retail expenditures, correct, even though you report the total expenditures in the text? Confirmation appreciated!
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    IMPLAN Support
    Hi Leslie, We apologize for the delay in response as a result of technical issues with our forum board yesterday. You are correct, with the story boarding method you talk about the total sales, but use the appropriate Margined employment and payroll. Please let us know if you have any further questions.
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