Trade Flow vs. Econometric RPC

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    jenny
    Hi Nathan, One solution would be to build a copy of your model but use econometric RPCs, make the output changes, and rebuild with econometric RPCs. Then you can edit the RPCs for the affected sectors in the tradeflows model, based on the RPCs given by the econometric model. That way, you can continue using the tradeflows model but with edited RPCs for the sectors for which the data was edited. However, please note that the econometric RPC method currently available in IMPLAN is somehwat outdated and can sometimes produce unexpected results. So if it gives an RPC that is significantly different from the tradeflow RPC, you may want to keep the tradeflow RPC unedited or use some average of the two. In the second set of edits, you are not actually changing the value of Output, so using econometrics (or adjusting tradeflow RPCs) is not necessary.
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    nkemper@uark.edu
    Jenny, Very interesting proposition on editing the trade flow model with econometric RPCs for only the sectors for which data is adjusted. I'm going to have to tinker around with that. Thank you. One additional point of clarification on the second situation: in a contribution analysis (using either trade flow RPCs or econometric RPCs) would you recommend modifying the commodity production of the sector of interest so that the primary commodity equals 1 and thereby setting industry production from a mix of intermediate demand and final demand to only final demand (exports)? Just want to make sure this would be the recommendation in the case of both trade flow RPCs and econometric RPCs. Thanks so much, I appreciate your thoughtful suggestions. Nathan
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    jenny
    That is correct. Additionally, since you are assuming that the food processing plant only processes soybeans, you will want to edit the food processing sector so that the only agricultural crop it purchases is Oilseeds. You can make this change by going to Customize > Industry Production, then scroll down to sector 45. Add the Coefficients for grains, cotton, and all other crop farming products to the Coefficients for oilseeds, then set the Coefficients for grains cotton and all other crop farming products to 0. Put a checkmark in the "Fixed" boxes next to all these changed Coefficients, then click "Balance" and "Save". You will need to rebuild your model after these changes.
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