MRIO plus contribution

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spkane

• May 12, 2017 18:15

We are trying to look at how certain regions within our state are economically dependent on each other. We normally conduct a contribution study on the ag sectors (using our survey data) based on the multi-sector contribution protocol. If we separate the state into regions (say, rural and non rural) to look at this, can we still conduct a contribution study? Do both models need to be customized in trade flows, etc. or just the one in which there will be direct impacts? Thanks

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  IMPLAN Support

  • May 15, 2017 14:44

  Hello Janice, Thank you for your Forum post. We do not recommend MRIO in a contribution analysis. In IMPLAN, the trade flows are fixed and ignore any adjustment you’ve made to RPCs. So, suppose you have a base region A and linked region B. If in region A you set RPC = 0%, region B will still buy some of that commodity from A (assuming there is trade of that commodity between the two regions), thereby inflating A's output beyond the study area level. Plus, that industry will have to buy more inputs, so the ripple effects on other industries will also be inflated at that point. Hope this helps and please let us know if you have any additional questions. Regards, IMPLAN Staff

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