Supply Chain Effects

Thank you for your post! There are a couple on considerations here depending on how you are setting up your Model. Most likely since you are looking at government spending pattern you are doing this by means Analysis-by-Parts. If that is the case and you set the Event line for the required commodity to LPP = 100% the software will assume that you can get all of you particular commodity needs locally. However, the remaining rounds of Indirect and Induced Effects will be calculated using the RPC factor. If you are using a Government Enterprise Sector, then when your region is not able to supply all of the Intermediate Expenditures that are required of the impacted sectors, IMPLAN will then know that the remaining expenditures need to be imported from other regions. The dollars are essentially leaked out of the region. IMPLAN will also provide you the % of a commodity that can be purchased in the region, this is called the Regional Purchase Coefficient (RPC)...Explore > Social Accounts > Industry Balance Sheet. You can correct this by importing that spending pattern and looking at this Sector with a Analysis-by-Parts methodology with LPP set to 100%. One other consideration, Analysis-by-Parts and MRIO are unfortunately not currently compatible methodologies, as the leakage from LPP is reduced prior to hitting the Multiplier Matrix and it is only after that initial hit that the MRIO methodologies take place. If you are trying to combine these two methodologies, please give us a call.

Thank you for your post! There are a couple on considerations here depending on how you are setting up your Model. Most likely since you are looking at government spending pattern you are doing this by means Analysis-by-Parts. If that is the case and you set the Event line for the required commodity to LPP = 100% the software will assume that you can get all of you particular commodity needs locally. However, the remaining rounds of Indirect and Induced Effects will be calculated using the RPC factor. If you are using a Government Enterprise Sector, then when your region is not able to supply all of the Intermediate Expenditures that are required of the impacted sectors, IMPLAN will then know that the remaining expenditures need to be imported from other regions. The dollars are essentially leaked out of the region. IMPLAN will also provide you the % of a commodity that can be purchased in the region, this is called the Regional Purchase Coefficient (RPC)...Explore > Social Accounts > Industry Balance Sheet. You can correct this by importing that spending pattern and looking at this Sector with a Analysis-by-Parts methodology with LPP set to 100%. One other consideration, Analysis-by-Parts and MRIO are unfortunately not currently compatible methodologies, as the leakage from LPP is reduced prior to hitting the Multiplier Matrix and it is only after that initial hit that the MRIO methodologies take place. If you are trying to combine these two methodologies, please give us a call.