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Local Purchase percent in MRIO analysis

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omkarjoshi
Dear Moderator, I am doing a Multi-Regional IO (MRIO) model to see the detailed impact of a wood pellet industry in a particular region in Tennessee. I have followed IMPLAN webinar videos to do it. However, I am curious to know your suggestions regarding use of local purchase percent for any MRIO study. Should I be setting it as 100% or SAM model value. Of note, I do not have good knowledge about local market in this situation. Thanks, Omkar
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    IMPLAN Support
    Hi Omkar, Thank you for your forum post. The LPP specifically refers to the Direct Impact. In your case, as long as the manufacturing the of the wood pellet's is in the region in TN that you are building your Model on; then 100% is the proper selection. If you did not know where the impact is taking place, you can set this to SAM to let the Model decide. The RPC dictates the regional availability of commodities. The RPC's are built into the spending patterns and Multipliers and affect all the Intermediate Expenditures and Induced purchases triggered by the production. Thanks! IMPLAN Staff
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