Accounting for Imports in Acquisitions of Goods in US model

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mshires

• June 21, 2019 20:25

I am trying to understand a detail on setting up my model in IMPLAN. If I am buying something that is largely manufactured (say broadcast and wireless communications equipment, which is 80 percent overseas mfg) overseas and I am using the US national model, do I have to adjust the direct spending amount for the purchase downward by the 80 percent to reflect the fact that the main producers or overseas? Or is this somehow accounted for in the model (e.g. embedded in the multipliers included in the 305 category?  Thanks for any insights you can offer.

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• Official comment

  

  Brian Barlow

  • June 24, 2019 15:52

  Hey Michael,

   

  Great intuition here! You have two options: 

  1. You're welcome to reduce the total input to whatever gets you to the amount purchased locally ("locally" meaning within the US), just as you suggested in your post. 
  2. Alternatively, you can use the full amount in your input and then change the LPP (local purchasing percentage) to 20% if you only want 20% of that number applied. This simply does the same as Option 1...  it reduces the total before that number runs through the multipliers. 
     • To change the LPP in IMPLAN Pro, create an event and then select EVENT OPTIONS > EDIT EVENT PROPERTIES > LOCAL PURCHASE PERCENTAGE > USER LPC.

   

  Thank you!

   

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