I have a question regarding interpreting MRIO results, and would be so appreciative for some guidance. I'm currently working on an MRIO analysis examining the impact of a firm within 6 different counties. I'd like to understand the impact of the firm on each county, and in the 6 county region as a whole. I've built 6 individual county models, and with each one included the remaining counties using the MRIO function. When looking at the scenario results, I understand the first on the list in 'models included' refers to the impact on the target area, and the remaining results refer to feedback effects on the non-target area models. With regards to the results, I do have a few questions: 1.) In order to gather the full impact on all counties, do I need to add all of the indirect and induced effects from the non-target area results to the corresponding target area results for each county, and then sum the results? for Ex. with models A, B, and C, I need to add the indirect and induced impacts from results for B and C where A is the target, to the results from B and C when they are the target counties (and of course repeat with A) in order to get the full impact in the region containing A, B, and C. 2.) Additionally, I notice many of the non-target area results appear to be the same for a given area. For example, many of the non-target area indirect and induced effects for A--whether from B or C, appear to be identical, even though spending varies considerably from area to area. Is this normal, or the sign or a problem? Thank you for your time and effort, John
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  • Hi John, A couple of quick clarification questions, before we address your questions. It sounds as if you may have built 6 single county Models and then opened each one of those Models and linked them together. Is this the case? If so you may need to run your analysis again. All regional Models used in MRIO should only have single direction linkages and, unless you only have Direct effects starting in each region, you'll only need to link from the Direct Model to the other regions. If you are working with a situation where you do have Direct impacts in all 6 regions you will need to build 36 Models, one set of 6 for each Direct impact. Please let us know if this is the case, as we can point you to a tool in the software that will assist you in building the Models. It is important not to establish cross-linkages as this can artificially inflate the results. In answer to your questions: 1. Yes you can add the results from each region together and then re-sum the total to get a total MRIO effect. So if you have all 6 Models linked together the total MRIO results would be the Direct effect from your first region and then Indirect and Induced effects from the remaining 5 regions. You can also add the Direct effects and the resultant Indirect and Induced effects across all modeling Scenarios if this makes sense for your report. 2. Could you provide us with some additional information of exactly what you are seeing? If you do have multiple Direct effects (say a change in regions A, B, C) and you do have the Models cross-linked this may be part of the issue as well.
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