Multipliers Interpretation

Comments

2 comments

  • Avatar
    IMPLAN Support
    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!
  • Avatar
    adhi2823
    Thank you so much!!!!

Please sign in to leave a comment.