IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/132228.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/132228/files/02-1-2.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.132228?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marousek, Gerald, 1979. "Farm Size and Rural Communities: Some Economic Relationships," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 11(2), pages 57-61, December.
    2. James Kliebenstein & Peter F. Orazem, 1999. "The Structure of Wages and Benefits in the U.S. Pork Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 144-163.
    3. Marousek, Gerald, 1979. "Farm Size And Rural Communities: Some Economic Relationships," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 11(2), pages 1-5, December.
    4. 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).
    5. Hertel, Thomas W., 1990. "General Equilibrium Analysis of U.S. Agriculture: What Does It Contribute?," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(3), pages 1-7.
    6. Chism, John W. & Levins, Richard A. & Honadle, Beth & Wang, Yin, 1994. "Minnesota Agricultural Economist no. 676," Minnesota Applied Economist\Minnesota Agricultural Economist 206493, University of Minnesota, Department of Applied Economics.
    7. 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), pages 1-20.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabe, Todd & McConnon, James C., 2018. "Popping the Question: The In uence of Survey Design on Estimated Visitor Spending in a Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 48(4), August.
    2. Mansury, Yuri & Hara, Tadayuki, 2007. "Impacts of Organic Food Agritourism on a Small Rural Economy: A Social Accounting Matrix Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(3), pages 1-10.
    3. Rickman, Dan S. & Wang, Hongbo, 2022. "Industry Aggregation and Assessment of State Economic Development from Motion Picture and Television Production Incentives," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 52(1), August.
    4. Jablonski, B.B.R. & Schmit, T.M. & Kay, D., 2015. "Assessing the Economic Impacts of Food Hubs to Regional Economies: a framework including opportunity cost," Working Papers 250012, Cornell University, Department of Applied Economics and Management.
    5. Todd M. Schmit & Becca B. R. Jablonski & Yuri Mansury, 2016. "Assessing the Economic Impacts of Local Food System Producers by Scale," Economic Development Quarterly, , vol. 30(4), pages 316-328, November.
    6. 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.
    7. Philip Watson & Steve Davies & Dawn Thilmany, 2008. "Determining Economic Contributions in a Recreational Industry," Journal of Sports Economics, , vol. 9(6), pages 571-591, December.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roe, Brian E. & Stockberger, Aaron, 2004. "Explaining Economic Linkages Between Farms And Local Communities: Looking Beyond Farm Size," 2004 Annual meeting, August 1-4, Denver, CO 20208, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Jablonski, B.B.R. & Schmit, T.M., 2014. "‘Local’ Producers’ Production Functions and Their Importance in Estimating Economic Impacts," Working Papers 180117, Cornell University, Department of Applied Economics and Management.
    3. Foltz, Jeremy & Zeuli, Kimberly, 2004. "Challenging the Goldschmidt Theory of Rural Purchasing Patterns," Staff Paper Series 475, University of Wisconsin, Agricultural and Applied Economics.
    4. Linda Lobao & Curtis Stofferahn, 2008. "The community effects of industrialized farming: Social science research and challenges to corporate farming laws," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 25(2), pages 219-240, June.
    5. Salant, Priscilla & Munoz, Robert D., 1980. "Rural Industrialization And Its Impact On The Agricultural Community: A Review Of The Literature," Staff Reports 276702, United States Department of Agriculture, Economic Research Service.
    6. Ejigou Demissie, 1986. "Farm financial trend in Missouri and its future implications," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 3(4), pages 66-74, September.
    7. Bitsch, Vera & Harsh, Stephen B., 2004. "Labor Risk Attributes in the Green Industry: Business Owners' and Managers' Perspectives," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 36(3), pages 731-745, December.
    8. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    9. Yu, Li & Hurley, Terrance M. & Kliebenstein, James B. & Orazem, Peter F., 2012. "Firm Size, Technical Change, and Wages in the Pork Sector, 1990-2005," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), pages 1-17, August.
    10. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    11. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
    12. Terrance M. Hurley & James B. Kliebenstein & Peter F. Orazem, 2000. "An Analysis of Occupational Health in Pork Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 323-333.
    13. Tyers, Rod, 1992. "Searching under the Light: The Neglect of Dynamics and Risk in the Analysis of Food Trade Reforms," 1992 Occasional Paper Series No. 6 197873, International Association of Agricultural Economists.
    14. Cho, Seung Jin & Lee, Jun Yeong & Winters, John V., 2020. "COVID-19 Employment Status Impacts on Food Sector Workers," ISU General Staff Papers 202006080700001107, Iowa State University, Department of Economics.
    15. Karl D. Meilke & Don McClatchy & Harry de Gorter, 1996. "Challenges in quantitative economic analysis in support of multilateral trade negotiations," Agricultural Economics, International Association of Agricultural Economists, vol. 14(3), pages 185-200, August.
    16. Tyers, Rodney, 1991. "On The Neglect Of Dynamics, Risk And Market Insulation In The Analysis Of Uruguay Round Food Trade Reforms," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 1-19, December.
    17. Nin Pratt, A. & Bonnet, P. & Jabbar, Mohammad A. & Ehui, Simeon K. & de Haan, C., 2005. "Benefits and cost of compliance of compliance of sanitary regulations in livestock markets: the case of Rift valley Fever in the Somali Region of Ethiopia," Research Reports 182867, International Livestock Research Institute.
    18. Dell'Aquila, Crescenzo & Sarker, Rakhal & Meilke, Karl D., 1999. "Regionalism And Trade In Agrifood Products," Working Papers 14591, International Agricultural Trade Research Consortium.
    19. Peterson, Willis L., 1995. "Farm Programs And The Environment: The Case For A Limited Land Payment," Staff Papers 13876, University of Minnesota, Department of Applied Economics.
    20. Alexandre Gohin & Herve Guyomard & Chantal Le Mouël, 1998. "Agricultural policies analysis : contribution of computable general equilibrium modeling [L'analyse des politiques agricoles : l'apport de l'équilibre général calculable]," Post-Print hal-02837721, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:132228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.