Hi there, I ran an impact analysis on a zip code level because I was interested in the impacts within a city that roughly corresponds to a zip code. The indirect and induced impacts seemed high given how easy and inevitable it would be for beneficiaries of the direct effects to redirect their income outside of the city. For comparison, I ran the same analysis using all of the zip codes within that county. Even though the city has about 4% of the county's population and Gross Regional Product, a comparison of the 2 results suggests the city would realize 95% of the county's indirect employment, 73% of the county's induced employment, and similar levels of the county's indirect and induced labor income, value added, and output. My question is twofold: 1. Specifically, is there an explanation for why such a large percentage of countywide indirect and induced effects could be captured within such a small sub-area? 2. More generally, is my comparison a valid one methodologically speaking? -Dima
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