Commodity Production Mismatch?

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akerna

• July 29, 2016 20:17

Dear IMPLAN Staff, During analysis we found two adjacent industries where the primary commodity produced in each industry corresponds to the other. We are working with Arizona 2014 data and the IMPLAN sectors are 81 and 82. The primary commodity produced by sector 81 is 3082 and the primary commodity produced by sector 82 is 3081. This seemed unusual to us and we wanted to make sure the commodity production wasn't mixed up. Please advise. Thanks! Ashley

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  IMPLAN Support

  • August 02, 2016 22:40

  Hello Ashley, Your post is being researched. We will have a response soon. Regards, IMPLAN Staff

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  IMPLAN Support

  • August 05, 2016 14:49

  Hello Ashley, Thank you for bringing this to our attention. The byproducts for those two industries are indeed switched. We did some testing of the consequences of this, and we saw that for your study area, reversing the byproducts makes only a very small difference in the multipliers (generally in the thousandth’s place). Part of the reason that changing the byproducts to their proper rates minimally affects the model is that the two industries are very similar in terms of what they produce, who demands what they produce, and what it is they buy as part of making their final product (i.e., their absorption). You can customize the byproducts functions, however, to set them to the correct levels by going to Customize>Commodity Production and selecting each of the industries. For example, for sector 81, make the byproduct coefficient for 3081 equal to 78.831% and the coefficient for 3082 14.367%. If you plan to make more models in which you are using these industries, we can send you an updated structural matrix. Please email support@implan.com about how to obtain it. As noted, though, this will have a nearly indiscernible effect on your model. Regards, IMPLAN Staff

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