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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.
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    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.

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    Bibliographic Info

    Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

    Volume (Year): 32 (2002)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:jrapmc:132228

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    Keywords: Agricultural Finance; Demand and Price Analysis;

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    1. 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).
    2. Hurley, Terrance M. & Kliebenstein, James & Orazem, Peter, 1999. "The Structure of Wages and Benefits in the U.S. Pork Industry," Staff General Research Papers 1475, Iowa State University, Department of Economics.
    3. Swanson, Michael J. & Morse, George W. & Westeren, Knut Ingar, 1999. "Regional Purchase Coefficients Estimates from Value-Added Tax Data," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 29(2).
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