Local Purchase Percentage - breakdown of impacts

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NicoleDell

• June 11, 2012 20:06

I'm working on an Economic Impact Analysis of a downtown revitalization. I used IMPLAN to project the economic impacts that would be generated at the County level. We received a comment that says "please elaborate on the local purchase percentage assumptions used within the county-based IMPLAN model and what portion of these benefits will actually accrue to the Town and Village?" Can you please direct me on how I can estimate this. Thanks!

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  DougO

  • June 11, 2012 21:39

  When a firm operates within a region, 100% of its output is local. To model that firm, you apply 100% of the output to the region multipliers - ie, LPP = 100%. Within that firm's multipliers, assumptions about what a firm buys locally are built in and were estimated based on RPCs as determined by our trade flow model. The more the firm buys locally, the larger the multiplier and the bigger the local impact. All estimated impacts accrue to the region being modelled.

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  NicoleDell

  • June 12, 2012 00:11

  I think I understand what you're saying... Would the quick answer be, "It is unknown what portion of these benefits will actually accrue to the Town and Village"...since the model was run at the County-level? Thanks!

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  DougO

  • June 12, 2012 03:30

  I don't know which benefits that you are referring to. If you are talking about tourists spend in the local hotel, then the LPP=100% - ie, the local village gets all the benefits. The indirect and induced reported would also be local village benefits as the reports do not show the impacts of surrounding regions if you are not doing an Multi-region analysis. So it depends on the tourist expenditure and whether it was local or not.

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