Comparing Total Output to GDP

What is the relationship between “output” in IMPLAN and GDP? If IMPLAN tells us that the increase in output in a study area due to a policy change is $10 million and the GDP of the study area is $1 billion, is that a 1% increase in GDP?
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  • Hello, Value Added is GDP in IMPLAN, and is a component of Output but Industries' Output or the Output results of analysis would not be directly comparable to GDP. However you could compare the total Value Added of the results to the regional GDP. More information on the relationships are provided below. However, we also wanted to point out that when considering policy changes in IMPLAN you typically need to think of these as net analyses, because typically the spending is coming from somewhere and is now being spent in another way. Thus the only true way to make an estimate of increased GDP with IMPLAN would be to examine the loss of funds flowing to previous programs, or the loss of funds from the revenue source. This will give you a more full measure of GDP because you will be seeing the combined loss from the previous fund usage and the current expansion. Here is some additional information about the relationships of Model factors. Output = IE + VA VA = GDP or GRP Value Added = Employment Compensation + Proprietor Income + Other Property Type Income + Taxes on Production Value Added is the difference between an industry's or an establishment's total output and the cost of its intermediate inputs. Value added consists of compensation of employees, taxes on production and imports less subsidies (formerly indirect business taxes and nontax payments), and gross operating surplus (formerly other value added). (BEA); it is a measure of the contribution to GDP made by an individual producer, industry or sector; gross value added is the source from which the primary incomes of the SNA are generated and is therefore carried forward into the primary distribution of income account. (SNA)

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