Modeling large impacts relative to existing industry size

I ran a model with several industry output events that were extremely large relative to activity in the industry in the county (e.g., Industry 444 has $151M output in the county and I ran a $133M output event). The RPC for this industry in this county is only about 9%. I noticed that regardless of whether I ran an Industry Output or Commodity Output event (using an MRIO model with the rest of the state as the other region), all the direct effects still occurred in the county even though the existing industry in the county couldn't realistically handle that amount of activity.

Is there an alternate way to specify the model that would yield direct impacts outside of the county due to the limited capacity of the industry where the spending is occurring?

If a modeled event would just totally swamp an existing industry, how does IMPLAN handle that?

Thank you!

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  • Official comment

    Hello Elizabeth!


    As long as the Industry exists in the Region and Data Year, IMPLAN will not restrict the Event Value you specify due to the size of the Industry. You can read more about the key assumptions of IMPLAN IO in our support article here.

    Regarding the Direct effects you noted, you will only have these in Regions where you have specified a Direct impact. In an MRIO analysis, this means that any linked Regions that do not have Events will not have any Direct Results. If you wish for some of the Direct impacts to occur outside of the primary Region, you will have to specify this with Events placed in the Region/Group where they occur. 


    Hope this helps!

    Michael Nealy

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