By this assumption, each industry’s production requires a unique set of inputs, no matter which product it is producing. This assumption provides the basis for the mechanical calculation of the total requirements tables in the I-O accounts. See also Handbook of Input-Output Table Compilation and Analysis, Studies in Methods, Handbook of National Accounting, Series F, No. 74, (New York: United Nations, 1999): 88. (BEA)

An Industry Event is appropriate when your goal is estimating the effect of a production change and the industry experiencing the change is known.

There are four types of Industry Events:

1. Industry Output
2. Industry Employment
3. Industry Employee Compensation
4. Industry Proprietor Income

These four Events Types behave in very similar ways. You should pick from one of these four Events based on which value you have available: Output, Employment, Employee Compensation or Proprietor Income, as this selection determines the appropriate value you should enter as your Event input Value, but the three other Values can be provided additionally through the Event Advanced Menu if they are also known.

Industry Contribution Analysis is a method used to estimate the value of a Sector or group of Sectors in a region, at their current levels of production.  For more information, visit the article Introduction to Industry Contribution Analysis.

Induced effects stem from household spending of labor income, after removal of taxes, savings, and commuters.  It represents the response by an economy to an initial change (direct effect) that occurs through re-spending of income received by a component of value added. IMPLAN’s default multiplier recognizes that labor income (employee compensation and proprietor income components of value added) is not a leakage to the regional economy. This money is recirculated through the household spending patterns causing further local economic activity.

Note that IMPLAN models account for commuting patterns; thus, induced impacts will only reflect the spending of wages from residents.  IMPLAN removes payroll taxes, personal taxes, and savings before allowing the remainder to be spent on goods and services.  IMPLAN also accounts for imports and does not assume that all purchases of goods and services are made within the study area.