Using I-RIMS
I used the BEA's RIMS-II in the past and am now trying I-RIMS. I am an economist and am trying to find the economic impact of the local county fair. I want a simple analysis as that would be best for the people who have asked me to examine the issue.
The fair spent about $2.5 million last year.
I looked at the multipliers for 62 industries and thought that industry 57, Performing arts, spectator sports, museums, zoos and parks would be the closest. For my county, the final demand output multiplier is about 1.49.
1. Can I multiply $2.5 million by 1.49 to get the change in output due to the fair in 2015?
2. Can I multiply $2.5 million by the final demand earnings multiplier to get the change in earnings?
3. Can I multiply $2.5 million by the final demand value added multiplier to get the changes in value added?
4. I understand that the employment multiplier is based on 2013 prices. If I deflate $2.5 million by the deflator that was provided, can I multiple the deflated figure (in 2013 $'s) by the employment multiplier to get the change in employment?
5. Do I use the result in number 2 above and multiply that by the direct-effect earnings multiplier to get the additional earnings caused by the additional earrings?
6. Is the sum of the net change in earnings due to the fair the sum of numbers 2 and 5?
7. Do I use the result in number 4 above and multiply that by the direct-effect employment multiplier to get the additional employment caused by the original change in employment?
8. Is the sum of the net change in employment due to the fair the sum of number 4 and 7?
This newbie appreciates any advice you can lend me.
Feel free to contact me at rjgitter@owu.edu
Thanks,
Bob Gitter
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IMPLAN SupportHello, The following responses are based on the assumption that you are looking at the Total Multipliers sheet with columns 1-4 being the final demand Multipliers and columns 5-6 being the Direct Effect Multipliers. [ol] [li]You need to use the deflators sheet to convert the 2015 Dollars to 2013 dollars, since the Multipliers (assuming you have 2013 data which you post seems to imply) will be based on 2013 relationships, but beyond that your assumption is correct. You can use the deflators to readjust the value back to 2015 or whichever year you are interested in reporting results in.[/li] [li]Yes, again after adjusting for deflation[/li] [li]Yes, again after adjusting for deflation...all of these will give you total values.[/li] [li]You are correct that you need to deflate here as well, but this Multiplier is expressed per million dollars of Output, so you would need to make that adjustment as well. For example if you Employment Multiplier was expressed as 6.256225953 than you would divide your Output value by $1MM and then multiply the results (2.5) by this Multiplier. [/li] [li]No. Unfortunately there is no way to determine Direct Earnings from these Multipliers. The Earnings Multiplier expressed in the column 5 is assuming that you are starting value is Direct Earnings and you are trying to solve for Total Earnings.[/li] [li]Thus this also won't work.[/li] [li]Again the same principle in 5 applies, that Multiplier in column 6 is used to calculate Total Employment if you are starting from an Employment value. There is no way to get back to the Direct component of Employment.[/li] [li]Again you also cannot resolve this without knowing the Direct Employment from outside of I-RIMS.[/li] [/ol] There is some good additional information on how to use the deflators and other elements of I-RIMS data in the Read Me Document that is zipped into the folder. Also if you are looking for those estimates, those are available through the IMPLAN software and data based products. Please let us know if you have any additional questions, and we hope this helps.0
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