Construction Impacts - New Residential constructio
Hello - I am running an analysis of construction projects. I do this similar study every year. I am noticing with the 2013 data that for employment, if you look at the top 10 impacts, both nonstore retailers and clothing retailers come up with relatively large indirect effects (this has not been true in previous studies). I am having trouble justifying how a construction project (a multi-million dollar apartment building) can create big ripple effects in clothing stores. Or why would construction companies be purchasing clothing at all? And in retail stores?
I went to look at the production functions (just to see where this was coming from) and the number one purchase for the sectors 59-61 is nonstore retail and number two is clothing. I'm not sure I believe this to be correct.
Can you explain why the production function is this way? I am using a model for the State of Minnesota.
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Hi Brigid, In the attached spreadsheet, the tab “2007” is the original data we got from the BEA (Use table). In the “Construction” tab, we've copy/pasted those 3 residential construction sectors’ columns, calculated percentages, and sorted by percentage. There, you can see that the number one purchase is made from “Other Retail”. If you flip back to the “2007” tab, you will see highlighted in yellow that the latest BM does not have as much sector detail in retail as it used to – so this “Other Retail” sector includes Furniture, Electronics, Health and personal care, Gas stations, Clothing, Sporting goods, Miscellaneous, and Non-store retailers! So we had to split the purchase of this single “Other Retail” commodity into these 8 sectors based on earlier Benchmark tables that had those sectors. We hope this helps and please let us know if you have any additional questions, IMPLAN Support Team [attachment=643]hec68b42.xlsx[/attachment]
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