county to state level impact

Hi IMPLAN Team, I am currently conducting an economic impact analysis for an existing company closed in Alaska. Assuming the company would lost 80 employment, I could run the single region analysis for the impact in one county. My question is how to get the impact at state (AK) level? I tried two ways: 1. Simply apply for 80 employment in Alaska state data, but I don't think it's correct way since it seems I would get the same results regardless in different counties. (i.e, there is no impact difference if the company in county A or in county B). I expect even for the same project, there should be different impact to state level if the project in the different county. 2. I also used multi-regional analysis: I included two models in my analysis, one is the target county level (i.e, company location) and the other is rest of state level (i.e, include all counties except target county). For the state level impact, could I sum target county and rest of state to get the whole state impact? (for total employment, 400 (target county) + 940 (rest of state) = 1340, but if I only run in AK state data, I only get 840.)
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  • Hello Yan, Yes, your single region county analysis is correct, if all you know is a loss of 80 jobs, and the sector the company falls into. The only other consideration would be if these 80 jobs make up the entire Implan Sector, if this is the case you will want to make some modifications to your analysis. 1. You would not want to use the state total file and the single county without making some adjustments to the state file, but the MRIO methodology will be a more accurate method. This article explains why there will actually be differences between the county impact vs the state impact: https://implan.com/index.php?option=com_content&view=article&id=677:677&catid=253:KB33 B.) The state data set is a total of all counties within that state and thus it represents an average of all the industries in the region and in a state like AK where there are large rural areas the state file may have smaller average relationships depending on the Industry and the target county. If you need additional information on why this happens please let us know. 2. The MRIO would be more accurate. As long as you don't include the target county in your Rest Of State (ROS) model (which from your description you did not do) you have no issues with double-counting in summing the Indirect and Induced impacts from the ROS Model. You can also calculate your own MRIO Multiplier if you need by summing the ROS results with the county results and using the equation Total Effect / Direct Effect.
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