1. IMPLAN - Support
  2. Community
  3. Data Questions

Healthcare affects:Direct vs. Indirect vs. Induced

Avatar
srydell2
Hello, I am creating an analysis for the foundation of a health system. I am using this analysis to introduce them to the IMPLAN tool so they can understand its capabilities. I need to be able to explain the difference between direct, indirect, and induced affects. These are non-economists, and I am struggling to translate the definitions from the glossary to a quick description or example that would make sense to this group. Could anyone help explain the three affects in layman's terms? I attached a ppt slide I would like to be able to present to them. I feel like examples would be easiest for them to digest. Once I get a better understanding of the relationship between direct, indirect and induced I think it will be easier to come up with examples. Thanks, Sam
Was this post helpful?
0 out of 0 found this helpful

Comments

1 comment

Sort by Date Votes
  • Avatar
    IMPLAN Support
    Hi Sam. The direct (positive) effect refers to additional outside money that comes into an economy through an increase in domestic and foreign trade. The indirect effect is the additional money spent on locally produced inputs including labor to make the additional goods that are traded. The induced effect is the additional household consumption by the laborers' families with the additional income they bring in--individually or collectively. Also, we have attached a slide that discusses these concepts as well. We hope this helps you in explaining these concepts to your audience.
    0

Please sign in to leave a comment.