Comparing Multipliers between Regions

Is it okay to compare multipliers across regions, for example county, state, and nation. For example, say at the county level the impact of a job in industry X is 1.5, at the state it is 2.0 and at the nation it is 2.5. The conclusion being the the county job does not have as big of an impact as the state.
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  • Hi Tim. If you are using IMPLAN generated Multipliers for all study regions, it would be fine to make such comparisons. Since all sets of Multipliers are produced using the same methodology, differences in Multipliers across regions would indicate differences in the economic structure of those regions and less on differences in the methodologies used to derive them. That is, large study regions tend to satisfy more of the regional demand inside the region, simply because they are more economically diverse. Smaller regions, on the other hand, tend to have low multipliers, because fewer goods and services are available locally and thus income and spending “leak out” at a higher rate. I hope this answers your question. Please contact us if we can be of further help.
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