Type II vs. Type SAM Multiplier Confusion

Hello, IMPLAN Version 3 does not calculate traditional “Type II” multipliers. V3’s Type SAM multipliers are similar to Type II multipliers insofar as Labor Income and households are endogenous in the model; however, the Type SAM multiplier allows leakages from households (recipients of Labor Income) to things like taxes and commuters, at variable rates across 9 different household classes based on average income. Due to this added detail incorporated in Type SAM multipliers, we recommend them over traditional Type II multipliers. In either case, however, it is not clear to us how you would have used Type II multipliers to differentiate sector detail beyond what is available in an IMPLAN dataset. The multipliers do not embody information with greater sector detail than what is available in the study area data and IMPLAN social accounts. Even if you allocated certain amounts of an industry’s output, value added, and employment to different sub-sectors, e.g. split grain into wheat and non-wheat farming, the intermediate purchase coefficients of the two constituent industries would be the same, but you might be able to use different VA/Output and/or Employment to Output rates for those constituent industries to estimate somewhat different effects, if you have information to make those differentiations. Note, however, that in no way can IMPLAN data or multipliers make such differentiations for you. We think you might be referring to contribution analysis: Take a look at our [url=https://implan.com/index.php?option=com_content&view=article&id=660:660&catid=253:KB33]Single Industry Contribution Analysis[/url] article and let us know if it clarifies anything for you.

I had found the contribution analysis article earlier after I realized that I was thinking of something entirely different. Could you explain in more detail why you use the reciprocal of the Type SAM multiplier to reduce the output for the contribution analysis?

Hi Shawn. The reciprocal is calculated so as to only get the Direct value of the Industry's Output minus that Industry's Indirect and Induced impacts.