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Output Multipliers

sstauner

January 26, 2015 20:10

I have downloaded the data and was reviewing the output multipliers for a specific set of zip codes within the county (that generally encompass the city of Milwaukee) as compared to the output multipliers for the entire county. Why would multipliers for a sector of the overall county (i.e., the city) be higher than multipliers for the entire county? I would think that dollars would be re-spent within the county more readily than they would within a smaller portion of the county (regardless of the defined boundaries). Can you shed some light on this for me?

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IMPLAN Support
January 28, 2015 15:28

Hi. Thank you for your post. In order for them to truly be comparable he needs to make sure that both are built eRPC. A series of ZIP Codes can have a higher RPC, and thus a higher Multiplier, because the RPC is based on a ratio of supply and demand, if you isolate a ZIP Code or series of ZIP Codes that creates the majority of the supply in the county. If the majority of that Sectors production is in your selected ZIP Codes then expanding the regional geography to county level increases demand but not supply, thus the RPC is actually driven down in the larger geography.

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