Construction
Why are there no intermediate expenditure coefficients for the construction sectors? Would building new warehouses and factories and stuff not be an input into the production process for every industry?
Is there a way to determine the construction inputs by industry?
-
Official comment
Hi there!
The Leontief Production Functions show goods and services needed for the process of creating goods and services. They are current accounts and don't include any 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.
Capital investments by industry are represented in capital column payments to commodities in the SAM. The IMPLAN SAM doesn’t contain industry-level capital investment detail, instead it reflects the structure of the Bureau of Economic Analysis benchmark Input-Output tables, in which capital investment is considered a final demand. There is a general Capital Spending Pattern that we can share with you if you are interested, but it is across all Industries.
Comment actions -
Here is the Capital Spending Pattern. Let me know if we can help in any other way!
-
In app.implan.com you can also analyze the Capital Spending Pattern using a 2019 Institutional Spending Pattern Event Type and selecting the Specification 14001 - Capital.
Please sign in to leave a comment.
Comments
10 comments