Sector impacts larger than output
I'm conducting an economic impact analysis on the effects of visitors to a resort community on a very popular fishing lake in Northern Minnesota. I have received resort sales data from the resort association, but the annual sales provided from their association are MUCH larger than what is reported in IMPLAN for the study area. I'm using a small study area - only four zip codes. I know the data they have provided me is accurate. How can i explain the discrepancy? Thanks, Monica
Hello, There are a few things to consider, especially since you are using ZIP Codes, in terms of data estimations. - Even though you are looking at a 4-ZIP Code region, ZIP Code regions may represent very small economic regions and consequently, be extremely open to leakages. These leakages, even to nearby regions (in some instances this could literally be across the street) are lost from the modeled region resulting in very small indirect and induced effects. Please take into consideration where indirect purchases will be located and where employees may be spending their labor income when customizing zip code regions for analysis. - Our main source of data for generating zip code files comes from the Bureau of Census County Business Patterns (CBP) program, as they release 6-digit NAICs employment data at the zip code level. There will be cases where you may find that an industry exists in an actual zip code region but does not show up in the zip code data (or even the county data). This occurs because of unreported sectors in the CBP and inconsistencies in data between CBP and BLS covered wages and employment. When this issue occurs, you will need to Customize your IMPLAN data to add the industry to the Study Area. - The headquarter office for some larger resorts may not always physically exist in the same ZIP Codes, especially if owned by a corporation. - See [url=http://www.implan.com/index.php?option=com_content&view=article&id=307&Itemid=1797#zip-codes-not-represented]Understanding the Data in your ZIP Code Files[/url] and [url=http://www.implan.com/index.php?option=com_content&view=article&id=306&Itemid=1797#productivity-data]How ZIP Code Files are Estimated[/url]. If you are looking to run an impact on the Resort sector, you can enter in the Industry Sales value, then update any of the other Event fields to match your estimate. There also is the option of customizing the [url=http://www.implan.com/index.php?option=com_content&view=article&id=409&Itemid=1797]Study Area Data[/url] if you wish to continue to use the ZIP Code region. Please let us know if you have any further questions.
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