Estimating Composite Multiplier
Hi,
I have estimated the impact of industry change, household income change, and institution spending pattern. Now, I want to estimate the composite multiplier for the spendings. Household income change produced only induced impact. Is there a way to estimate composite multiplier of programs that include both industry change and household income change. If it is possible, what can be the direct number (ex. employment, labor income, value added, output etc) for household income change.
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The direct number will be the amount of household spending applied to local multipliers - that is, goods and services bought from local sources and manufacturing. They are lumped in version 3 in the household spending type, because, by definition for analysis-by-parts, it is all induced. The easiest way to get the breakout is to take advantage of the linearity of I-O. 1) Go to Setup Activities>Activity Options>Import>Institution Spending Pattern and choose the household sector you are interested in. 2) Run a 1 million dollar impact. 3) Apply the same distribution of Direct/indirect/induced from step 2 to your "induced effect" Note, when you run money through Activity Type: Household income change, as you did, the software automatically removes taxes and savings, and applies rpcs to the spending to remove imports. When you import an "institution spending pattern", every dollar is treated as a disposable dollar and only the imports are removed.0
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