Converting Industry sales to Industry margin

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xTsantos

• August 06, 2014 02:41

Hello Can you please explain why it is necessary to convert industry output gross sales to industry output gross margins for new data sources acquired to replace data IMPLAN uses? What are the impacts on empirical analysis, if any? Thank you

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  IMPLAN Support

  • August 07, 2014 20:14

  Hello, Margining is necessary to avoid over-counting retail activity impacts. Assigning gross sales to the retail sector would assign both the retail service activity (gross margin) as well as the producer value of the manufacturing. Output per worker is much smaller for retail activity than manufacturing, so without margining the employment impact would be vastly overstated. Also, depending on the region, the manufacturing activity is likely to not even occur locally and would not have any local impact.

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