Multipliers Interpretation
I ran a model for one county. It gives me total industry detail. Now, I wanted to check the employment multipliers. I have 6 columns, i.e., Direct Effects, Indirect Effects, Induced Effects, Total Effects, Type II multipliers and Type SAM Multiplier. I see the formula for Type II multipliers and Type SAM multipliers. Can you please help me how to interpret these Direct Effects, Indirect Effects, Induced Effects, Total Effects???? Suppose I have 7.65 as Direct Effect, 1.25 as Indirect Effect, 1.75 as Induced Effect and 10.65 (sum of these three effects) as total effects. I am struggling how to interpret these effects. Can you please help me interpret them? Thanks in advance.

Hi Arun, Thank you for your forum post! You noted a set of Effects as described below: Suppose I have 7.65 as Direct Effect, 1.25 as Indirect Effect, 1.75 as Induced Effect and 10.65 This would be interpreted to mean that for every one million dollars of Output there would be 7.65 jobs in the impacted (Direct) Industry, which in turn would support 1.25 jobs across all affected Industries as a results of business to business purchases (Indirect Effect) and support another 1.75 jobs stimulated from labor spending (Induced Effects). Thus a total of 10.65 jobs are related to a million dollars of production in this Industry. The following link is to an article "General Information About Multipliers" that will address the differences between Effect and Multiplier: http://implan.com/index.php?option=com_content&view=article&id=212. Thanks!
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