Construction and Architectural industry

Sam-

There could be several factors that would cause you to see a greater impact in one region over another, even when using the same value of inputs. Zip code regions may represent very small economic Regions and consequently, be extremely open to leakages. You can read more about using zip code regions as your study area here.

It is important to note that every region (zip code, county, or state) has its own Output per Worker ratio for each Industry. If you are entering a value using an Industry Employment or Employment Compensation Event, IMPLAN will estimate the total output using those ratios. You can find those by exploring the Study Area data from the Regions screen, under Industry Averages.  For example, if your output per worker is $100,000 in Region A and $150,000 in Region B, your direct output will be $10M for 100 workers in Region A but $15M for Region B.

Secondly, every region has its own Leontief Production Function (LPF) for each Industry. The LPF determines how an Industry will allocate Output to operate. The LPF is comprised of Intermediate Inputs, Labor Income (Employment Compensation & Proprietor Income), Taxes on Production and Imports, and Other Property Income. You can find the percentage allocation to each component of the LPF for your Industry by exploring the Study Area data from the Regions screen, under Social Accounts > Industry Balance Sheets > Commodity Demand (Intermediate Inputs) and Value Added. For example, if Region A allocates 35% of output to Intermediate Inputs and Region B allocates 55%, Region B will see greater Indirect Effects as more of output was applied to the Type I multiplier.

Additionally, every region will have its own Regional Purchase Coefficients (RPC) values for each commodity demanded by that Industry. The RPC determines what proportion of local demand for the Commodity is supplied by producers located within the Study Area, the remainder is satisfied by imports which are considered a leakage in the model. You can find the RPC values for each commodity demanded in your Industry by exploring the Study Area data in the Regions screen, under Social Accounts > Industry Balance Sheets > Commodity Demand. If Region A has higher RPC values for the commodities demanded than Region B, more of the intermediate inputs were applied to Type I multiplier, therefore Indirect Effects will be higher.

Lastly, every region has its own commuting rate. In IMPLAN, in-commuting rates are region but not industry specific. You can calculate your region's commuting rate by following this article. The in-commuting rate is used to determine leakages of Employment Compensation in a region. For example, a region with a 25% in-commuting rate will see 25% of earned EC stemming from an impact analysis treated as leakage from the local economy. If Region A has a higher in-commuting rate than Region B, it will result in lower Induced Effects.

Hope that helps.