National and State Analyses

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    IMPLAN Forum
    Hi Brian, Thank you for your forum post. The result gap that you saw when you compared the National Total file to the State total Files are expected. As the National Total File is an aggregate of all 51 states vs the State Total File is just focusing on that specific state. The expectation is a lower result. MRIO is a great technique if you are looking at the impact of a State to another State, or a State to County or County to State. In addition to the difference derived from the fact that the National file is an aggregate of all Industry relationships, the underlying Multiplier calculation is different (Supply/Demand pooling rather than Trade Model) and so variance also arise from the differences in Multiplier definitions. Unfortunately there is no way to make the results match. But MRIO is always the preferred method. If you could provide us with additional information about your study; we can make specific recommendations.
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    Brian L.
    I have industry sales data by state. The national model generated total output of about $40 million, but the sum of the individual states generated output of about $30 million. If I do an MRIO for California, for instance, I would capture the activity in California, and the activity that flows back to California through other states. However, using the state MRIO, I am still omitting indirect activity in other states driven by the direct activity in California. To get the two reports to reconcile, would it be fair to apportion out the indirect ($10 million) by the share of state impact? Thanks.
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    IMPLAN Forum
    Hi Brian! Thank you for your follow up post. The MRIO method is ideal in a lot of situations as it demonstrates the Indirect and Induced impact that stems from the base or Direct Model region. For example; If the state of CA is your base model/Direct and that is linked to the state of WA. The MRIO method will be able to tell you the Indirect and Induced impacts that stem from CA to WA then back to CA and back to WA and so on until the rounds of spending leak out of the area. You can see the Indirect and Induced results by clicking on that model's name in the Results screen. You will need to add those impacts in manually as they do not sum together. While there can only be 1 Direct region or base Model you can link up to 9 Models together. These Models can include an aggregate of State Total Files as there is not a restriction on the number of regions to be included in a Model; it is just the number of Models linked. To set up your study; you will need 51 different Rest of US models, assuming all 51 states experiences a direct effect. For example: If CA is the Base Model you can link it to the Rest of the US minus the CA total file. or If WA is the Base then the linked Model will include the Rest of the US minus the WA total file. Once a Model is linked to another, you will not be able to use either Model in another MRIO set of analysis. Getting Started with MRIO: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=367 I hope that this is helpful.
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