Allocation of spending in a jurisdiction
I am working on an economic impact project at the county level and IMPLAN is predicting very high indirect spending amounts. We have a lot of data from our client and know what industries their indirect spending occurs. IMPLAN predicts some large indirect expenditures in categories that we do not believe are possible in our county.
This leads me to question how IMPLAN determines spending in each jurisiction? Is spending based on actual businesses located within the county or perhaps based on a national or statewide average? Is there a reason why we would see spending in an industry category that we know does not exist in the County?
Thank You
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IMPLAN SupportHi Edward, Thank you for posting your question! When IMPLAN reports Indirect, this is the spending between businesses to purchase or replenish their supplies/commodities to make their production. The Indirect Spending as well as the Induced and Direct results are just what is occurring in the Study Region. The spending that occurs from outside of the region is not captured in the Model and it is considered leakage. Since our IMPLAN Sectors can include a multitude of NAICS Codes; there maybe a business that you would not anticpaite reporting to a specific NAICS code that maps to the Industry you think is not in the region. You can view in the Study Area Data, to see which Sectors/Industry exist in the region. IMPLAN Pro Explore > Study Area Data IMPLAN Online: Model Overview > Study Area Data I hope that this helps! Thanks.0
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