Interpretation of results from Multi sector analys
I am having difficulty in interpreting the results from the multisector contribution analysis.
Table 3. Sectors 203 and 319 Contribution to the Nebraska Economy, 2011
Impact Type Employment Labor Income Total Value Added Output
Direct Effect 48,627 $3,110,475,843 $5,906,826,607 $10,416,427,491
Indirect Effect 19,464 902,896,348 1,360,403,940 2,436,003,332
Induced Effect 26,927 983,619,348 1,718,768,024 2,974,031,322
Total Effect 95,018 $4,966,991,538 $8,985,998,571 $15,826,462,145
any help on this?
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Hello, Here is some basics on interpreting a multi-industry contribution analysis. Because model modifications have changed 203 & 319's production from a mix of intermediate demand and final demand to only final demand (exports), Direct and Indirect effects cannot be interpreted literally from the Results display. Direct effects are customarily regarded as sales to final demand and Indirect effects as the supply chain consequences of those sales. However, because intermediate sales have been changed to final sales in the edited model, the Direct and Indirect effects relate to all sales, not just final sales as shown in the unedited model. Is there any specific item you would like to clarify?
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