"Embedded" firms/jobs
Do you have any knowledge about "embedded" or "captive" firms or jobs in an industry, in other words, firms or jobs that are not directly counted within an industry, but are impacted indirectly because of the industry's change in demand. For example, a change in demand in the metals industry may have an indirect impact on jobs in the automobile industry. We've seen this concept used once before, but know little about it and how it is calculated. We'd appreciate any information you may have on the subject.
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Auto industry demands are affected through the induced effects of the multiplier for any industry. The less payroll there is, the less household income, the fewer cars bought. There are also supply multipliers (can't be created with IMPLAN) that capture the impact of forward linkages. For example, if less metal is available, then fewer cars can be made with existing production functions. I suspect I don't understand your question.0
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Auto industry demands are affected through the induced effects of the multiplier for any industry. The less payroll there is, the less household income, the fewer cars bought. There are also supply multipliers (can't be created with IMPLAN) that capture the impact of forward linkages. For example, if less metal is available, then fewer cars can be made with existing production functions. I suspect I don't understand your question.0
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Another thought is by-products, that is if the auto industry produces metal as a by-product then it would be affected in a dropoff of demand for metal. This can be modeled in IMPLAN by setting the "basis" to "commodity" in impact analysis. This distributes the direct effect specified by the user to all industries that produce the commodity based on its overall regional contribution. For example, if Auto Industry produces 10% of the regional production of metal then it gets 10% of the direct effect.0
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Another thought is by-products, that is if the auto industry produces metal as a by-product then it would be affected in a dropoff of demand for metal. This can be modeled in IMPLAN by setting the "basis" to "commodity" in impact analysis. This distributes the direct effect specified by the user to all industries that produce the commodity based on its overall regional contribution. For example, if Auto Industry produces 10% of the regional production of metal then it gets 10% of the direct effect.0
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For example, direct chemical industry employment totals do not include those "embedded" chemical companies that are classified in other NAICS code/industries. I was wondering if you know of a method for calculating those "embedded" firms or jobs.0
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For example, direct chemical industry employment totals do not include those "embedded" chemical companies that are classified in other NAICS code/industries. I was wondering if you know of a method for calculating those "embedded" firms or jobs.0
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You are talking about by-products then. An establishment is identified by the commodity it produces the most of in terms of value even though it produces several different commodities. Create a commodity balance sheet (reports>social accounts) for the commodity of interest. It will tell you who produces it and how much, then use the output per worker for each of the involved industries to figure out the employment.0
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You are talking about by-products then. An establishment is identified by the commodity it produces the most of in terms of value even though it produces several different commodities. Create a commodity balance sheet (reports>social accounts) for the commodity of interest. It will tell you who produces it and how much, then use the output per worker for each of the involved industries to figure out the employment.0
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