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SAM LPPs

slandau

October 15, 2013 00:59

Hi I tested SAM LPP on sector 336 for an Industry Change analysis on 3r nested models: 1 county; 2 counties including the first; and an 8 county region including the two initial counties. I found the LPP changing from 30% to the first county to 39% for the two counties, but dropped to 34% for the region (It did increase before increasing to 66% when I looked at the whole state). My questions is shouldn't the SAM LPP increase as the geography widens, which would imply that the region should be higher than the two counties? Thanks

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IMPLAN Support
October 15, 2013 20:41

Hi Steve, Generally you are correct that larger Study Areas have larger RPC's but this is not always the case. An RPC can actually be small if the additional geography increases demand at a higher rate than it adds to supply. So it would appear that you third county demands a lot of the commodity you are examining, but produces very little of it in comparison to it's demand and the production/demand ratios of the other two counties. This is actually one of the reasons why MRIO is a better method of analysis than aggregating Study Area regions. Please let us know if you have any additional questions.

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