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Contribution analysis and MRIO

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omkarjoshi
Dear Moderator, I want to have your insights on whether the result coming from single region analysis or MRIO will be same or different if we pursue economic contribution (not Impact) analysis for multiple regions? In the IMPLAN example of Washington county, (http://test.implan.com/index.php?option=com_multicategories&view=article&id=551:551&Itemid=71) results suggest that linking Washington County and RAM generates total additional 25.6 jobs in Washington County. Please note that I am just discussing about impact in Washington County (25.6 additional jobs) due to MRIO for the moment. I know that additional effect of Windows being purchased in Washington County creates 4,278.8 jobs in RAM, which is not the topic of my discussion. Compared to single region effect, so why these additional 25.6 jobs were added in Washington County with MRIO? My understanding is that RPCs in Washington County model (for window purchase) are capturing the imports from RAM. With CONTRIBUTION analysis, since we will adjust RPC as zero, there will be zero import. This means there will be no impact of the import coming from other regions to Washington county. This means, with the MRIO in case of CONTRIBUTION analysis, we should see no addition of 25.6 jobs in Washington County, but we will see added 4,278.8 jobs in RAM (MRIO works one way). In other words, my take is that this example showing added 25.6 job in Washington county is true for IMPACT analysis but not for CONTRIBUTION analysis. Does my thought process make sense? I will appreciate your insightful suggestions one way or other. Omkar
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    IMPLAN Support
    Hi Omkar, Thank you for your post! MRIO or (Multi Regional Input/Output) allows you to see the feedback impacts from one region to another. Instead of aggregating several regions together and losing the identity of each region, MRIO will allow those identities to be kept. In addition, MRIO captures more spending and reduces leakages. Without MRIO, we have no idea how much spending regions outside Washington County will be directed to Washington County, but we do take this into account with MRIO. This is the reason for the additional jobs in Washington County using the MRIO method. You are correct in that MRIO is only for impact analysis only and not contribution. For a contribution analysis, you are not wanting to add on any impacts from outside the region; rather, you are trying to look at the contribution of existing industry within the region. Thank you!
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