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Supply-side impacts

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Dave2328
Is there anywhere I can find a detailed description and/or example of a method to apply supply-side impacts to IMPLAN? I have been doing some internet searching and have found that some people have taken a decrease in supply and calculated lost revenue. That impact was treated as a decrease in expenditures. From there, they were able to push that impact forward to other industries that will subsequently have a reduced output due to the supply constraint. It sounded as though that reduced output was then treated as if it were a decrease in demand. This makes sense, but I see many opportunities for errors. So, I was hoping there might be a detailed description or example available through IMPLAN or maybe in the literature that someone might know about. Thanks.
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    DougO
    There are couple ways to this; 1) Using IMPLAN I-O accounts to create supply side multipliers. This has to be done outside of the software. There was a US Forest Service PNW Research station paper on this topic by Schallau and Maki (I believe). You'll have to use Google to try to dig it up. 2) Convert the product to it's primary manufactured form. Eg, if you lose stumpage the loggers and sawmills who use this product lose output. If you can estimate the product value at the sawmill level and apply the impact to sawmill, it will capture all the linkages in the impact estimates to that point - including loggers and growers.
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  • Avatar
    DougO
    There are couple ways to this; 1) Using IMPLAN I-O accounts to create supply side multipliers. This has to be done outside of the software. There was a US Forest Service PNW Research station paper on this topic by Schallau and Maki (I believe). You'll have to use Google to try to dig it up. 2) Convert the product to it's primary manufactured form. Eg, if you lose stumpage the loggers and sawmills who use this product lose output. If you can estimate the product value at the sawmill level and apply the impact to sawmill, it will capture all the linkages in the impact estimates to that point - including loggers and growers.
    0

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