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customizing industry production

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soungl
Hello. I'm working on a study that aims to measure impacts of forestry and logging sector. I have identified four IMPLAN sectors in this area - Sector 15, 16, 19 and 335. However, I'm concerned about double-counting in measuring total impacts. Of the four sectors considered, some may be a downstream sector of another sector. For example, Sector 16 Commercial logging uses Commodity 3015: Forest, timber, and forestry nursery products, a majority of which is produced by Sector 15: Forestry, forest products, and timber tract production. In other words, indirect impact of Sector 16 would include a portion of Sector 15 production. The balance sheet (2011 data) shows that 1) 55% of Commodity 3015 is produced by Sector 15, and 2) 36% of Commodity 3015 is consumed by Sector 16. To avoid the double-counting discussed above, I am considering customizing the model in the following manner. a. Customize b. Industry production c. Select Sector 16. d. Zero out the coefficient of Commodity 3015. Is this an appropriate way to deal with this issue? Thank you in advance.
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    IMPLAN Support
    Hello, This is correct and you'll want to do it for all cases where you are modeling separately any of these 4 sector's inputs. One important thing to note, however: Before you change the coefficient for the input in question to 0, write down the coefficient value. Then, scroll down to commodity 3436 (Noncomparable foreign imports) and add the input commodity's previous coefficient (the one you just wrote down) to commodity 3436's current coefficient. This ensures that the Total Absorption Value (seen to the left of the production function list) remains the same. If you do not do this, then more will be spent on Value-Added since Output must equal Intermediate Expenditures + Value-Added. After making all these changes, you'll need to click "Save" and then go to Options > Construct > Multipliers.
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