Question about how IMPLAN "closes" models

Hello!  I'm an instructor teaching students how to use IMPLAN for impact analysis, and my students had question about IMPLAN I was not able to answer: I-O models can be "opened" or "closed."  Older material I've read from the 1990s defines or "open" I-O models as those that measure final household consumption effects from an economic stimulus (induced effects), while closed models do not truck with induced effects/households. 

Does the process of "closing" the I-O model in IMPLAN the same for every type of input (institutional spending, household income, industry output, proprietor income, industry employee income, etc.)?  Or does it vary based on the type of input we select?

Cheers,

Dr. Donald Planey, UNC-Chapel Hill

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  • Official comment

    Dr. Planey,

    Like you noted, IMPLAN is a closed I-O model. As far as I understand it, the process of closing the model in IMPLAN would not very based on the type of input you selected. 

    Best,

    Michael Nealy

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