Contruction of new power and communication structures does not have indirect and induced employment effects?

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Luke Daniels

• August 31, 2020 23:35

Hi,

We modeled a $1M increase to 52 - Construction of new power and communication structures and looked at the industries by impact on the employment result sheet.  The top employment industry was '52 - Construction of new power and communication structures' (as expected), but we noticed that it only included direct employment - not indirect and induced.  Is there a particular reason why there are no indirect or induced employment impacts for this industry?

Thanks,
Luke

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  maria_lucas

  • September 01, 2020 13:27

  Hi Luke,

  Great question. In general the Industry you impact through an Industry Event will be the Industry directly effected. The reason there are no indirect or induced effects to the construction industry impacted is because construction is not an Intermediate Input purchase included in any industries production function in IMPLAN.

  Intermediate Inputs are goods and services needed for the process of creating goods and services. They are current accounts only and do not include investment. By definition, new construction is an investment and is only sold to final demand. Therefore, new construction will not show up as an indirect or induced effect for any industry.

  Thank you,
  Maria 

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