Production function question

QUESTION: I am going to evaluate the impacts of a new mill in an area that currently does not have this industry present (IMPLAN Sector 150). Is there an example of a production function for this industry from another area that I could use as a proxy? I believe I have enough data to estimate value added components but the absorption coefficients would be more of a challenge. Any suggestions you have would be greatly appreciated. ANSWER: Once you make the industry exist in study area data (change the zeros to values) for industry 150, the production function will exist for industry 150. All missing industry sectors have a production function, they are just being multiplied through by zero output. QUESTION: So I can just put in the estimates for the value added components and then it will pull up the production function for use in the calculations?? ANSWER: Correct.
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  • Assume that I want to create an entire new industry and don't know the absorption? What is the kind of detailed survey data I need, in other words what do I have to ask the industry for to make it a sector? Once I got this data what do I do with it?
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  • Assume that I want to create an entire new industry and don't know the absorption? What is the kind of detailed survey data I need, in other words what do I have to ask the industry for to make it a sector? Once I got this data what do I do with it?
    0

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