using the matrices to check out spending patterns

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    jenny
    Hi Sandy, If you go to Customize > Trade Flows > Trade Model tab, you will see the Average RPC for every commodity. Since households purchase most manufactured commodities from a retailer rather than directly from the producer, you will be most interested in the retail service commodities and other service commodities (i.e., commodities 3320 and higher). If you want to adjust any of these, you can do so by clicking over to the Industry/Institution RPC tab, selecting the particular commodity from the drop-down menu, and then adjusting the Regional Purchase Coefficient for the Household rows in the lower box of the screen. If you make any changes, you'll have to reconstruct your multipliers (Options > Construct > Multipliers).
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    odorsj
    OK, I think I understand. Now suppose I have 50 workers, all of whom earn income in Region X. If I assume they are "normal" folks spending their income in average ways, can I rely on the model to handle the inevitable leaks that occur because very few households spend all of their money in Region X? Another way to ask this is, can I leave the LPP at 100% if I think spending of income by workers in a region is typical? Or must I guestimate how much income I think leaks out every time I run a model and look for induced impacts? Appreciate your reply. Sandy O
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    ScottL
    Assuming you are doing a labor income change activity type, leave the LPP to 100% and the model will apply the appropriate LPP to the spending pattern used in the impact.
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