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IMPLAN's Weakest Link: Production Functions or Regional Purchase Coefficients?

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  • Lazarus, William F.
  • Platas, Diego E.
  • Morse, George W.

Abstract

Regional purchase coefficients (RPCs) are often seen as the weakest link in input-output modeling systems such as IMPLAN. In IMPLAN the RPCs are estimated either by the supply-demand pool (SDP) method, which ignores cross-hauling, or by econometric methods, based on 1977 data. Yet, how much difference do the RPCs make relative to the production functions, which reflect national and not local conditions? This study uses a case study of the swine industry in Martin County, Minnesota to explore this question. While this is a limited test, the results suggest that the production function changes are much more important than the changes due to regional purchase coefficients.

Suggested Citation

  • Lazarus, William F. & Platas, Diego E. & Morse, George W., 2002. "IMPLAN's Weakest Link: Production Functions or Regional Purchase Coefficients?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 32(1), pages 1-17.
    • Handle: RePEc:ags:jrapmc:132228
    DOI: 10.22004/ag.econ.132228
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    6. Hurley, Terrance M. & Orazem, Peter F. & Kliebenstein, James B., 2000. "Changes In The Structure Of Wages In The U.S. Pork Industry," 2000 Annual meeting, July 30-August 2, Tampa, FL 21744, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    5. Schmit, T.M. & Jablonski, B.B.R. & Mansury, Yuri, 2013. "Impacts of Local Food System Activities by Small Direct-to-Consumer Producers in a Regional Economy: A Case Study From Upstate NY," Working Papers 180071, Cornell University, Department of Applied Economics and Management.
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    8. Liu, Zhilin & Warner, Mildred E., 2009. "Understanding Geographic Differences in Child Care Multipliers: Unpacking IMPLAN's Modeling Methodology," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(1), pages 1-15.

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