Sector 10 RPCs

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bfadali

• August 24, 2012 05:55

As I understand it, for commodity 10 for Churchill County 2010 we have an RPC of 0.36%. They produce $29 million of hay (for us sector 10 is pretty much just hay), they demand about $7 million yet only use $27,000 of the locally produced hay. There seems to be a similar pattern for the rest of the state. This seems odd. Our intuition is that there are a lot of hay exports but that local use would be met by local supply. What is driving these RPC numbers?

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  IMPLAN Support

  • August 25, 2012 01:58

  We at MIG, Inc. apologize for the delay in response. We have not forgotten this question and will have an answer for you by the end of the day.

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  IMPLAN Support

  • August 25, 2012 02:26

  The RPCs estimated by the Tradeflow Model are based on local supply and demand for the commodity relative to other regions’ supply and demand for the commodity and the cost of transporting the commodity to all other regions. In the meantime, my suggestion would be to use the Econometric method: Go to File > User Preferences > Social Accounts and select Econometric RPC. You will then need to re-construct your model: Options > Construct > Multipliers. You should see an RPC of 94.6%. If you are interested, this paper describes the Econometric RPC method: http://implan.com/v4/index.php?option=com_docman&task=doc_download&gid=219&Itemid=60. This paper describes the Tradeflow Model: http://implan.com/v4/index.php?option=com_docman&task=doc_download&gid=196&Itemid=60

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  bfadali

  • August 27, 2012 05:21

  I ended up customizing the trade flows so that all the local demand is met with local supply. Thanks!

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