Multipliers: County vs State


1 comment

  • Avatar
    IMPLAN Support
    Hi Tim, Since the Multipliers take into consideration the amount of production that can be purchased within the geographic definitions of the economy, the trend you are describing is common. Thus if we look at one county in Pennsylvania we will likely have less of the various commodities that we need to purchase available for from other businesses local to the county than we are trying to make a local purchase from the state. Likewise, if we try to make a local purchase at the national level, we will have many more industries available to accommodate our purchase locally. However, many imports will still occur at a national level because of foreign imports. Another way to think of it, is a county will have more leakages than a state, and a state more leakages than the nation. Please let us know if this addresses your concern or if you have any additional questions.
    Comment actions Permalink

Please sign in to leave a comment.