Comparing Inputs with Direct Output

Hello, I am modeling Tourism and I compared the total inputs that I entered into the software with the Direct Output that was reported in the Impact Summary in order to see if they matched. There was a difference - approximately $10M - and I do not understand why that is. My inputs and their corresponding Industry Sectors are below. I used the Industry Change Activity and all LPP's were set to 100%. 503 $58,590,328.88 412 $25,708,883.25 499 $168,863,423.93 406 $15,698,981.93 493 $15,698,981.93 414 $15,698,981.93 (Sum: $300,259,581.83) Here is the reported Impact Summary: ImpactType Employment LaborIncome TotalValueAdded Output Direct Effect 2,863.48 120,745,575.16 180,066,749.22 291,687,945.46 Indirect Effect 589.85 38,872,349.29 61,832,674.43 102,283,574.08 Induced Effect 826.21 46,367,852.06 74,382,843.52 119,630,276.23 Total Effect 4,279.55 205,985,776.50 316,282,267.17 513,601,795.77 There is no value reported in the Direct Institution Change field so I know that no money has been automatically removed for inventory and household spending. My first inclination is that maybe there is something going on with Retail Margins because one of those sectors (406) corresponds to a Retail Sector. Is this the reason behind the difference between my total input value and the reported Direct Effect for Output? If so, why does that happen? If the usage of a Retail Sector is not the reason, then what do think is happening with my model? Thank you very much! Andrew
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  • Hi Andrew, Thank you for your post! This is exactly the reason why your Sum of Event Value is not matching your Direct Output. It is because you selected Sector 406- a retail store and selected Gross Retail Sales (GRS). GRS is the Purchaser Price- paid at the store by the customer. When you Margin a retail sector, the Software is removing the other components that go into the product that was purchased (transportation, wholesale, and production). http://implan.com/index.php?option=com_content&view=article&id=161:161&catid=324:all-about-margins I did to mention that you can still report the sales as the original value. The Direct Effect shows what is being applied to the Multipliers, and because the product purchase is unknown the only aspect of the initial value that can be used with the Multipliers is the operational costs of the Retailer itself. You can verify this, just in case something else may be contributing to the difference, by going to Detail Results and sorting by Direct.
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