When to set LPP to 100% and when not


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    Hi Jared, As long as those 59 activities occurred in your study area, you will want to leave LPP = 100%. Leaving LPP = 100% just means that the 100% of the initial impact occurred locally – it does not mean that the directly-impacted sectors purchased all of their inputs locally. The multipliers already have built into them where the sectors buy their inputs needed to meet that direct demand - this is captured in the Regional Purchase Coefficients (RPCs). RPCs are unique to each commodity and region, and represent the proportion of local demand for a commodity that is supplied locally.
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