Industry Output Event vs Industry Impact Analysis (Detailed)

Hello – I hope this inquiry finds you doing well! I have a couple of questions that pertain to a methodological approach I’m ironing out for an economic contributions analysis.

I’m estimating the impacts of a business operating in the IMPLAN sector of 445 – Insurance agencies, brokerages, and related activities. The geography is Douglas County, Oregon.

The intermediate inputs are $2.434 million for 2021 (I am using 2021 IMPLAN data too). Of the total intermediate inputs, about 49% ($1.212 million) are locally purchased; the remainder (51%, or about $1.222 million) is purchased outside of Douglas County (i.e., elsewhere in Oregon or in another state). Employee compensation is estimated to be about $2.176 million for 32 FTE (all within Douglas County).

I am testing a couple different modeling methodologies so I can better understand the nuances of each and ultimately settle on the proper methodology to use. My questions are as follows:

1. “Simpler scenario”. I ran an Industry Output event with Total Output = $3.388 million (sum of employee compensation = $2.176 million and local intermediate inputs = $1.212 million). The resulting output SAM multiplier was about 2.6 under this scenario, which seems far too high for a single county. Given that the intermediate inputs I modeled were filtered for local expenditures (i.e., Douglas County) only, is it appropriate to add back in the non-local intermediate input expenditures to the direct output (after running the model) to generate the correct SAM multiplier? (If I add back in the $1.222 million of intermediate inputs not captured in this model, the SAM multiplier is about 2.2, instead of 2.6, which is still quite high).
2. “More complex scenario”. I have access to the NAICS sectors of each local expenditure made by the entity in question. Under this scenario, I tried an “Analysis by Parts” (ABP) approach where I generated a unique spending pattern for the entity. The inputs in my Industry Impact Analysis (Detailed) scenario are as follows: 32 Wage & Salary Employment, 0 Proprietor Employment, $2.176 million Employee Compensation, $0 Proprietor Income, $0 TOPI, $0 OPI, and $1.212 million in Intermediate Inputs. The total output is about $3.388 million (same as the “Simpler Scenario”). With these inputs, the resulting output multiplier is about 2.0. However, as far as I understand, when generating results under the ABP framework, I need to add back in the non-local expenditures I did not model (to properly account for the entity’s full business expenditures, local and non-local). If I add back in the non-local expenditures ($1.222 million) into my output results column, the multiplier is about 1.7, which seems like a much more reasonable multiplier relative to the “Simpler Scenario”. Does this ABP approach seem correct in the way described? If not, could you please provide me some insights on how I should model the entity properly under an ABP framework?

Given that I have access to the entity’s line-item business expenditures, I think the ABP framework makes the most sense to use. However, I wanted to inquire about my approach under each model run to glean any additional insights on how I could properly recalibrate my inputs.

Please let me know if I can clarify my language/thoughts in any way, and I will happily do so. Thank you so much!