Regional purchase coefficients greater than 1

In the county I am studying, I have seen regional purchase coefficients greater than 1 in the IMPLAN data. How can this be? If I understand these numbers correctly, they should be between 0 and 1 or at most equal to 1. If my understanding is correct, please help me understand why some of these numbers are greater than 1. Thanks!
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  • Hi Steve. This is an interesting occurrence. We agree that the RPC should not exceed a value of one in the model, and I am not sure why this is happening. There are several things that can cause the RPC to be larger than one. First, if the RSC or Local Use of Local Supply has been modified this could cause the RPC to exceed a value of one. However, changes to Average RPC are not noted in the Trade Flows form until after they have been saved and the model has been rebuilt. Second, there may be a glitch in the software that allows an RPC of greater than one to occur. Third, there may be a glitch somewhere in your dataset that allows this to happen. The only way that we can track down this error is if you would share your model with us to see what is happening. You can zip up the model(s) and email to us at implangroup@implan.com and we will run the Model to see if we experience similar issues. Also, please share any additional information that you feel comfortable and would help us in analyzing your problem. For example, changes made in the model and in which sectors, changes in the model RPCs, or other changes that you made in customizing your project. We look forward to resolving your issue.
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  • Thanks for your reply. I have not made any changes to the model. I just pulled the data for Bexar County, TX, as received. I have attached the file. Steve
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  • Thanks Steve. We are in the process of building the Bexar County, Texas Model for 2011 and 2012. From there, we will check the RPCs in both models to see if any of them are greater than 1. We will get back with you tomorrow.
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  • Hi Steve. Based on the Excel file that you sent me, it looks like you ran an industry x industry matrix for Bexar County, Texas in order to find the dollar value of inputs purchased by industry from industry. When you export the SAM and I/O Accounts to Excel/ CSV files, the numbers that are represented are not coefficients nor RPCs. Instead they represent the value in millions of dollars. So to determine the actual dollar values in the table you would take the value in Excel x 1,000,000. This is why some numbers are 1 or larger 1, because these dollar values represent expenditures over $1,000,000.00 As stated in an earlier post to you, RPCs should not exceed a value of one. Please let us know if you have any additional questions.
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