Double-Counting?
Hello,
I have a question about how to interpret the 'indirect' and 'induced' employment results when running a whole industry.
When I enter the total number of employees for an industry, say breweries, (taken from the IMPLAN industry details), then these are the 'direct' jobs created by the brewery industry as a whole. There should be no other jobs 'created' within the brewery industry as a result of its existence as I have accounted for [u]all[/u] of them already as 'direct' jobs. Why is it, then, that when I run this industry through IMPLAN, it shows there to be indirect and induced jobs created within the brewery industry. Is this not double-counting?
Thanks
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IMPLAN SupportHello Victor, Great question, and you are in a sense double-counting and in another sense overvaluing. It sounds like you are starting an analysis with data from the Study Area Data in the Explore accounts. This type of analysis is called a contribution analysis and it differs somewhat from an impact analysis, because you do need to make constraints on the original Event values in order to not end up having additional purchases from that Industry causing the 'anomalies' that you are describing. [url=https://implan.com/v4/index.php?option=com_multicategories&view=article&id=660:660&Itemid=14]This link shows how to perform contribution analysis with IMPLAN[/url]. There are two sections one for single Industry contribution and one for multi-Industry contribution analysis. The reason that you need to make these constraints is that most Industries, through Indirect and Induced backward linkages, end up stimulating purchases from themselves. The methods above allow you to force the Model not to make or to constrain these purchases, so that you do not drive the impacts of the Directly impacted Sector to be larger than the Study Area Data reports it to be. Please let us know if you have any additional questions. IMPLAN Support Team0
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