INTRODUCTION
IMPLAN's annual datasets provide a complete set of balanced Social Accounting Matrices (SAMs) for every zip-code, county, and state in the U.S. These SAMs provide a complete picture of the economy and can be used to conduct Economic Impact Analysis.
Generated by the model building process, the Social Account Reports Tables and the Balance Sheets Tables both contain a wealth of information about the specified study region, including the Industries present in the region, the Commodities produced in the region, the local demand for each Commodity (by Industry and Institution), the local supply of each Commodity, and the proportion of local demand that is met by the local supply (known as the Regional Purchase Coefficient). These region details are necessary for the calculation of impact results, but this information is available once a model has been built and can be viewed separately from any impact analysis. This article provides the definitions and descriptions of the terms found within Social Account Reports and Balance Sheets.
SOCIAL ACCOUNT REPORTS
Commodity Summary
Commodity Summary
- Industry Commodity Production = the Total Output of this Commodity that is produced by Industries. Some Commodities are produced by more than one Industry – this value includes the sum of the production of this Commodity by all Industries.
- Institutional Commodity Production = the total Output of this Commodity that is produced by Institutions (i.e., produced and/or sold by Government or taken out of Inventory).
- Total Commodity Supply = Industry Commodity Production + Institutional Commodity Production.
- Local Use of Local Supply = Total Commodity Supply – Foreign and Domestic Exports of the Commodity from the region. Exports can be found in the Commodity Trade section (see below).
- Intermediate Commodity Demand = total demand for this Commodity by Industries.
- Institutional Commodity Demand = total demand for this Commodity by Institutions (Inventory, Government, Households, Capital).
- Total Gross Commodity Demand = Intermediate Commodity Demand + Institutional Commodity Demand. The term “gross” refers to the fact that these figures include imports (both foreign and domestic) of the Commodity into the region.
- Domestic Supply/Demand Ratio = the percentage of total local demand for the Commodity that could possibly be met by local production. It is calculated by dividing Total Commodity Supply less Foreign Exports by Total Gross Commodity Demand, constrained to a maximum of 100%.
Commodity Averages Summary
- Average RPC = the proportion of local demand for the Commodity that is currently met by local production. It is “average” in the sense that there is just one RPC per Commodity, so all Industries and Institutions are assumed to purchase that Commodity locally at the same rate.
- Average RSC = the proportion of local supply of the Commodity that goes to meet local demand.
Commodity Trade
Commodity Exports
- Industry Exports = Exports of this Commodity (both foreign and domestic) that are produced by local Industries.
- Institutional Exports = Exports of this Commodity (both foreign and domestic) that are produced by local Institutions.
- Domestic Exports = output value of local production of this Commodity that is exported to other regions of the U.S.
- Foreign Exports = output value of local production of this Commodity that is exported abroad.
- Total Exports = Foreign Exports + Domestic Exports
- Foreign Export Proportion = the percentage of Total Exports that go to foreign countries. It is calculated by dividing Foreign Exports by Total Exports.
Commodity Imports
- Intermediate Imports = value of imports (both foreign and domestic) into the region for use by Industries as an input.
- Institutional Imports = value of imports (both foreign and domestic) into the region for final use by Institutions (Inventory, Government, Households, Capital).
- Domestic Imports = Value of imports of this Commodity that come from other regions in the U.S.
- Foreign Imports = Value of imports of this Commodity that come from abroad.
- Total Imports = Intermediate Imports + Institutional Imports.
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Foreign Import Proportion = the percentage of Total Imports that come from foreign countries. It is calculated by dividing Foreign Imports by Total Imports.
Institution Local Commodity Demand
This table lists each Institution’s demand for local production of each Commodity. Institutional Commodity demand is separated for each of the following Institutions: Households, Federal Government, State and Local Government, Capital, Inventory, Foreign Exports, and Domestic Exports. The sum across all Institutions for a particular Commodity is the total local Institutional demand for local production of that Commodity. This sum is equivalent to Institutional Commodity Demand * Average RPC from the View By: Commodity Summary screen. Foreign Exports and Domestic Exports are the same as reported in the View By: Commodity Trade screen.
Household Local Commodity Demand
This table lists each Household type’s demand for local production of each Commodity. Household local Commodity demand is separated for each of the 9 Household Income types. The sum across all Household types for a particular Commodity is equivalent to the “Households” value in the View By: Institution Local Commodity Demand screen.
Government Local Commodity Demand
This table lists each Government type’s demand for local production of each Commodity. Government local Commodity demand is separated for each Government Institution type. The sum across all Government types for a particular Commodity is equivalent to the “Government” value in the View By: Institution Local Commodity Demand screen.
BALANCE SHEETS
Industry Balance Sheet
Commodity Production
- Commodity Production = the Output value of each of the Commodities produced by this Industry.
- Byproduct Coefficient = the proportion of this Industry’s total Industry Output that is dedicated to each Commodity. If the Industry makes more than one Commodity, each Byproduct Coefficient will be less than 100%.
- Regional Market Share = the proportion of Commodity production that is produced by this Industry. If there is more than one producer of a Commodity, this Industry’s Market Share for that Commodity will be less than 100%.
Commodity Demand
- RPC = the proportion of local demand for the Commodity that is currently met by local production. This is the same value as that found in the View By: Commodity Summary screen.
- Gross Absorption = the proportion of Total Industry Output for this Industry that goes toward purchases of each Commodity. Gross Absorption is calculated as Gross Inputs/Total Industry Output. Total Gross Absorptions will be less than one, with the remainder of Total Industry Output going toward Value-Added.
- Gross Inputs = the value that this Industry spends on each Commodity.
- Regional Absorption = the proportion of Total Industry Output for this Industry that goes toward local purchases of each Commodity. Regional Absorption can be calculated as Gross Absorption * RPC.
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Regional Inputs = the value that this Industry spends locally on each Commodity. Regional Inputs can be calculated as Gross Inputs * RPC.
Value Added
- Value Added Coefficient = the proportion of Total Industry Output that goes toward each category of Value-Added. Each Value Added Coefficient can be calculated by dividing Value Added by Total Industry Output. The Total Value Added Coefficient + Total Gross Absorption = 1.00.
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Value Added = the dollar value paid to each category of Value Added.
Commodity Balance Sheet
Industry-Institutional Production
- Industry / Institution Production = the total Output of this Commodity that is produced by the Industry listed in each row.
- Regional Market Share = the proportion of Industry Production that is produced by the Industry/Institution listed in each row. If there is more than one producer of this Commodity, each Market Share will be less than 100%.
- Coefficient = the proportion of each Industry’s Total Industry Output that is dedicated to this Commodity. If the Industry/Institution makes more than one Commodity, the Byproduct Coefficient will be less than 100%.
Industry Demand
- RPC = the proportion of local demand for the Commodity that is currently met by local production. This is the same value as that found in the View By: Commodity Summary screen.
- Gross Absorption = the proportion of Total Industry Output for each Industry that goes toward purchases of this Commodity. Gross Absorption is calculated as Gross Inputs/Total Industry Output.
- Gross Inputs = the value that each Industry spends on this Commodity.
- Regional Absorption = the proportion of Total Industry Output for each Industry that goes toward local purchases of this Commodity. Regional Absorption can be calculated as Gross Absorption * RPC.
- Regional Inputs = the value that each Industry spends locally on this Commodity. Regional Inputs can be calculated as Gross Inputs * RPC.
Institutional Demand
- RPC = the proportion of local demand for the Commodity that is currently met by local production. This is the same value as that found in the View By: Commodity Summary screen. Note that if Institutions purchase this Commodity from local retailers, the retail margin portion of the purchase will have a high RPC; however, the producer portion of the purchase price will have a low RPC if there is little local production of that Commodity.
- Gross Demand = the amount that each Institution spends on this Commodity.
- Regional Demand = the amount that each Institution spends locally on this Commodity. Note that this value has already been margined (that is, if the Institution buys this Commodity from a retailer, this value only shows the portion of that purchase amount that goes to local producers of the Commodity). Regional Demand can be calculated as Gross Demand * RPC.
INDUSTRY ACCOUNT REPORTS
The interpretation of the Industry Account report is nearly identical to that of the Social Account reports except that Commodity production has been reassigned from the Commodity rows to the rows of the producing Industries and Institutions. In effect, the Social Accounts reflect the IxC SAM and the Industry Accounts reflect the IxI SAM. The Industry Account reports include: Institution Industry Demand, Household Industry Demand, Government Industry Demand, as well as the Industry Output/Outlay Summary.
RELATED ARTICLES
Final Demand: Measures of GDP and Value Added
Written August 30, 2024