Question on calculating indirect/induced effects

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    IMPLAN Support
    Hello Daniel, Both these definitions are correct but apply in different contexts. This is because Effects are different from Multipliers for all indicators other than Output. This article provides a good overview of the information you are looking for: https://implan.com/index.php?option=com_content&view=article&id=121&Itemid=1706 In answer to your direct question, the appropriate value to use for estimating Indirect jobs is the Type 1 Multiplier. To determine Indirect jobs you will multiply the value of your jobs by the Indirect Multiplier and then subtract your Direct jobs from the result. So if I have 10 jobs in an Industry whose Multiplier is 1.18, I can expect to get a result 11.8 jobs, 10 of which are my Direct and 1.8 of which are my Indirect. The SAM Multipliers would work the same way, you would multiply your Direct jobs against that Multiplier to determine total jobs. Please let us know if you have any additional questions. IMPLAN Support Team
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    dvielhaber
    Thank you so much--that's a huge help. The same holds for income, as well? If I want to find indirect/induced income, I would multiply the direct income by the SAM Multiplier and subtract the direct income?
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    IMPLAN Support
    Hi Daniel, The same is true for the Income impacts, the formula itself. You would use the Type 1 Multiplier to compute the indirect impacts and the the Type SAM Multiplier for the induced and direct. Thanks!
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    dvielhaber
    One final point of clarification: Did you mean induced and [b]indirect[/b] for the SAM? In other words, when I multiply the Type Sam Multiplier by the direct employment (or income) and then subtract the direct employment (income), I'm left with the sum of the indirect and induced employment (income). Do I have that right?
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    IMPLAN Support
    Hi! Yes, if you use the Type SAM to calculate Total Employment and subtract a known Direct Employment you will end up with the Indirect and Induced Employment. In order to separate the Indirect from the Induced you would need to first calculate the Type I (Direct and Indirect) and then the SAM. I hope this helps.
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