Induced impacts
I ran an analysis for a metro county using travel expenditures in six sectors with 2012 data. I did this last year with 2011 data. The travel expenditures (direct) rose slightly from 2011 to 2012, but after running the analysis and adjusting for inflation, total output fell from 2011 to 2012. Indirect output impacts fell by -6%, but induced output impacts fell by -12%. By major sector (IMPLAN aggregation scheme) the service sector, which in this analysis is composed of food service, entertainment & recreation, and lodging, is by far the largest component of direct expenditures and shows a significant decrease in induced impact from 2011 to 2012. Can you provide any insight into why this has occurred? Were there any major changes to the data that could explain this large reduction in induced impact? Because induced impacts comes from spending and re-spending of wages and salaries, does it imply that much of this spending occurred outside the county in 2012, that is, leakage increased dramatically from 2011 to 2012?
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IMPLAN SupportHello Robert, Proprietor income year to year can vary significantly. The REIS data use to determine proprietor income data is usually disclosed at the county level, the variation is usually real and measurable. For example, in 2011 in sector 411 for US "hotels & motels" proprietors' income was $3,228/worker. In 2012 this # was $478 or a loss of about $3000/worker in reduced income. You can see the type of variation that if not offset can result in lower induced effects. A workaround to this problem is to compare US #s for labor compensation & proprietors' income for these sectors in both years. The U.S. per worker values can be found in the Customize> Study Area Data screen for the industry that is selected on the left-hand menu, if you don't have access to the U.S. total file.0
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