Use of value added in value chain analysis


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    Value added is a constant proportion of an industry's output, no matter who the output is sold to (in Input-outpu modeling). From IMPLAN you would need: 1) Production function of industry of interest (available in the industry balance sheet report under Social Accounts reports). 2) Total output of industry of interest (to be applied to the regional absorption coefficients in the above report). 3) Value added to output ratios derived from the Employment, value added, output report (in Study Area reports). Note: this won't be precise as the production function is on a commodity basis and the value added to output ratios are on an industry basis. You would have to run the production function through the market share matrix to convert to an industry basis to be precise.
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