Multipliers

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    DougO
    If you are pulling the multipliers from the Access database, they will be output multipliers. The multiplier reports in the software are generated based on the study area relationships to output. Eg, the employment multipliers would be based on the output multipliers in the database and the region's output per worker for the involved industries.
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    Gopack1
    The employment multiplier based on output make sense. I expect to see a number somewhere near 2. How is the employment multiplier (the one from the multiplier link) used? I have an ag industry multiplier in NM of about 28. What does represent and how would it be used in analysis.
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    jenny
    The rule of thumb of 2 for multipliers only holds for output multipliers. Employment multipliers can be all over the board. High output per worker means low direct employment and employee compensation values per million dollars of output. High output per worker also means lots of inputs (and therefore, lots of indirect employment and income) per direct worker. To calculate the multiplier: (Direct + Indirect + Induced)/ Direct. With a low denominator and high indirect and induced, you get large multipliers. To interpret an employment multiplier of 28: For each agricultural job in NM, an additional 27 jobs are supported throughout the rest of the NM economy.
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