Odd State versus Regional Results

I have been conducting analyses at both state and regional levels. I am using the same template for importing regional activities (different values for each activity in each state). When I sum the DIRECT results for the individual states, I get totals that are approximately 10% greater than the value that I get when I run the regional model. I have done this for several Census regions, and am seeing the same results. Why is that? I would expect the state-level DIRECT effects to sum to the same or close to the regional results.
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  • Hi Thomas, We get this question quite often. It is true that generally a larger region has less leakages due to imports and therefore is typically a larger impact. However, depending on the industry mix of the county and the region(s) you are comparing it to, the RPCs for what is regionally available in a smaller region can exceed that of a larger region. This typically occurs when the primary region is a key producer of the commodities being examined in the study (or in general represents the largest functional economy in the region) and thus a larger area increases demand at a faster rate than it provides additional supply, thus reducing the RPC values. For more on this topic, visit our Knowledge Base article [url=http://http://support.implan.com/index.php?option=com_content&view=article&id=432:432&catid=14:sample-data-articles]"Size of Your Impact - Small vs. Large Study Region"[/url]. Thank you, IMPLAN STAFF
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