County vs Regional Impact

Comments

3 comments

  • Avatar
    IMPLAN Forum
    Hello, In general a larger region has less leakages due to imports and therefore is typically a larger impact. However, depending on the industry mix of the county, and the rest of the counties you are comparing, the RPCs for what is regionally available in a smaller region can exceed that of larger region. This typically occurs when the primary region is a key producer of the commodities being examined in the study and thus a larger area increases demand at a faster rate then it does supply, thus reducing the RPC values. However, a key problem also is that while it may seem like you are comparing like regions, because of the nature of Industry aggregation, you are comparing two distinct Multiplier identities. There are two methods for solving this. Ideally you would want to use Multi-Regional Input-Output Analysis. For this you would link your 14 county region to a Rest of State (ROS) Margin that would include all remaining counties except your 14 target counties. We've attached some links to information about MRIO. This method is ideal because both regions keep their respective identities and you see the increased ripple effects of the larger Study Area. Alternatively, if this is not an option for you, you would need to Customize the state level Study Area Data to match the 14 county aggregate Industry relationships for Output and Value Added factors.
    0
    Comment actions Permalink
  • Avatar
    Crystal Morphis
    The message says you posted links for MRIO but I do not see any? What is a Rest of State Margin? I do not understand what is meant by this: Alternatively, if this is not an option for you, you would need to Customize the state level Study Area Data to match the 14 county aggregate Industry relationships for Output and Value Added factors.
    0
    Comment actions Permalink
  • Avatar
    IMPLAN Forum
    Hi Crystal, I apologize for the missing links, they are posted below: [url=http://implan.com/index.php?option=com_content&view=article&layout=edit&id=367]Getting Strted[/url] [url=http://implan.com/index.php?option=com_content&view=article&layout=edit&id=368]Considerations of MRIO[/url] [url=http://implan.com/index.php?option=com_content&view=article&layout=edit&id=369]MRIO Results[/url] Rest of State Margin should read Rest of State. Your Rest of State Model should include the remaining counties in the state that were not included in your 1st model. You can modify the Study Area Data at the State Level if the MRIO option is not realistic. In the IMPLAN Software, select the Customize Menu < Study Area Data. You would want to modify the information in the Study Area Data to match the 14 county aggregate Industry relationships for Output and Value Added factors. I apologize if this does not answer your question, if not could you specifically let us know what the question is. We would be happy to answer any additional questions!! Thanks IMPLAN Staff
    0
    Comment actions Permalink

Please sign in to leave a comment.