Contruction of new power and communication structures does not have indirect and induced employment effects?


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    Hi Luke,

    Great question. In general the Industry you impact through an Industry Event will be the Industry directly effected. The reason there are no indirect or induced effects to the construction industry impacted is because construction is not an Intermediate Input purchase included in any industries production function in IMPLAN.

    Intermediate Inputs are goods and services needed for the process of creating goods and services. They are current accounts only and do not include investment. By definition, new construction is an investment and is only sold to final demand. Therefore, new construction will not show up as an indirect or induced effect for any industry.

    Thank you,

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