The IMPLAN manual(Page 154)states: LPP Imports displays the value of final demand that is lost from the Direct Effect as the cost of importing goods into the Study Area. This occurs as a result of Local Purchasing Percentage', 'LPP' being less than 100% for an Event or Events within an Activity. >>Note: Adding the LPP Imports, Direct Institution Change, and Direct Factor Change values with the Direct Output yields the total value towards Final Demand. I have often used that doublecheck as total program = LPP imports + direct impacts + 15000 codes transfer payments + Institutional Change + Direct Factor change. It works within a couple percent, except for using BOTH LPPs and Margins. See that attached example of purchasing $1 million of Farm Machinery in Arkansas. We know the amount spent is $1,000,000, farmer (retail) prices so we used margins. The above test shows $1,167,000 of impacts. I think the LPP Imports includes both the $193,221.18 in imported farm machinery; plus the $183,320 in Imports to the locally produced farm machinery and the Imports on the Marginal sectors. That is a double count of LPP Imports compared to using margins with 100% local purchase, or using RPC on farm machinery without margins.
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