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Retail sectors

scline

March 09, 2015 21:05

Hi, I am conducting a state level analysis of tourism spending. My expenditure profile has several different retail sectors included (400, 402, 404, 403, 405, 401), and I select gross retail sales for each of these sectors. When I run this analysis with $1 million through the model, appropriately split across the sectors, I end up with less than $1 million in total output (around $800,000-$900,000). Would this be expected when including a large number of retail sectors?

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3 comments

IMPLAN Support
March 10, 2015 20:37

Hi Sarah, Yes, this is an expected result when selecting Gross Retail Sale to ANY retail sector. The reason is what when you margin a retail sector you are in effect saying..I am not sure what was purchased but I know it was purchased at a retail store. So IMPLAN will just look at the Retailers portion of that sale and remove the rest of the value chain (Production, Transportation and Wholesaler). This article further discusses margining: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=161.

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scline
March 11, 2015 13:35

Thank you. I understand how margining works. The profile actually contains several non-retail sectors as well, so my concern was that the final output is less than $1 million even though several of the sectors are not margined. Although it sounds like this might still be expected based on the leakage from the retail sectors.

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IMPLAN Support
March 11, 2015 14:09

Hi Sarah, That is exactly correct. Your Output will be less than $1MM due to the leakage from the retail sectors that where margined. Thanks!

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