Combining Regions

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    IMPLAN Forum
    Hello, When aggregating regions together you are averaging the industry production. This will cause some industries to average out. We recommend looking into modeling this as a MRIO analysis. Because of the nature of aggregation the relationships such as Output per Worker and Labor Income/Worker may vary widely from a disaggregated Model to an aggregate one. Also if one region specializes in a type of production, while other areas have little to no production in those Industries or key first-round Indirect purchases, a larger area increases demand without significantly increasing supply. Thus a larger area can also have a lower RPC than a smaller one. MRIO avoids all these issues by allowing each region to keep it's regional economic identity, so you'll see the key impact in the key region and the resulting rounds of Intermediate Expenditures as they occur in the surrounding regions. Thanks!
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