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Contribution Analysis on Region

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huberthensen

I have a question that would help with an analysis but is also theoretical. Suppose one wanted to measure a 1% decline in output for an entire region. To do so, that person could run a contribution analysis and input a -1% industry change for all 500+ IMPLAN sectors (though incredibly time consuming), right?

Would such an analysis produce the same results as applying a -1% change to the values in the region's total industry output, employment, etc. from the industry details table, where all the impacts would be direct with no indirect and induced impacts? For example, if a region's total output in 2018 were $100 B, would a -1% contribution be -$1 B in direct impact and zero in indirect and induced impacts? Appreciate any insights.

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    Candi Clouse, PhD

    You are correct! If you run a -1% Industry Contribution Analysis for all 546 IMPLAN Industries this would show a 1% loss in Output across the Region. This would be the same as looking at a 1% loss from the Region Details Data Behind the i. By doing an Industry Contribution Analysis for all 546 Industries, you are restricting buybacks to all 546 Industries, therefore, there would be no Indirect or Induced Effects. 

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    huberthensen

    Great! Thanks for the confirmation, Candi. Stay safe.

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