When are industry margins used?

When I run an "Industry Change" activity, and choose to used margins, are industry margins used? If so, how are they used? Also, how does an industry margin differ from a commodity margin? What is the source for these margins, i.e., where does IMPLAN obtain them from? Thanks for your help.
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  • Hi Litic, Commodity margins are used in either case and are at identical ratios for the Industry Change and the Commodity Change activities. You can see exactly how the breakdown of the Margin occurs, by viewing the Event Options>Edit Event Properties>Margins>Edit screen. Using the “Industry Change” activitity is the method that we recommend in the Version 3.0 software, because the results are often more straightforward for industry analyses than for commodity changes. This is because with the Industry Change Activity type only the primary producer of the product is considered for the producing portion of the margin. When commodity changes are used, the producer’s margin is then additionally split by market share. The data comes from the 2002 BEA Benchmark. Thanks
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