Hi! I had a question with using IMPLAN output in sectors subject to sales tax in its geographic area to estimate the regional government’s gain from sales tax. The response I got was that this calculation is okay for Direct effect, but we can only apply it to Indirect and Induced effects if we know that later “rounds” of purchases take place in the same geographic area. I thought I understood the response, but as I spent more time thinking about it I got confused again. I thought that Indirect and Induced effects take place in the same sector and represent local effects, so wouldn’t they be taxable in the same way that Direct output is? Thank you.
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