Abstract
An analysis of regional multipliers is developed to reveal a structural flaw in how IMPLAN computes induced effects. This analysis reveals a fixed ratio across sectors between total and Type I employment multipliers, and that IMPLAN's “Type III” income multipliers are inversely related to the average wages in the direct and indirect sectors, and that “Type III” output multipliers are not affected by wages. A multiplier decomposition is developed that separates direct and indirect effects from the induced and further separates the induced impact into relative wage and regional income retention effects. The decomposition is useful in making comparisons among impact models.
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