Institution Spending Pattern
Hi,
I am a bit confused with the interpreting the impact number generated from food stamp program. I imported PCE "Food purchased for off-premise" and estimate the impact. It gives me direct, indirect and induced impacts. Is not these all classified as induced impact? I tried to estimate the impact from household income change, I found the impact numbers are very different. Of course, it generates induced impact only. I would appreciate your thoughts on this.
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Technically household spending impacts are induced. But when you apply a spending pattern, the software doesn't know the source of the spending. For the reports, any value applied to multipliers is direct, subsequent industry to industry interactions is indirect and any labor income generated by the direct and indirect causes the induced. The only exception is the "Labor Income" activity type where all three effects are dumped into the "induced" category - this was done to simplify the analysis-by-parts discussions. However, this makes things a bit inconsistant and confusing.0
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Thank you. Can I just lump all into induced impact and get rid of the direct, indirect impacts?0
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Yes, it all represents the additional economic activity generated by spending of household income.0
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