Using Ready-Made Regional Input-Output Models to Estimate ...

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Model Adjustments • Adjustments made to RPCs (regional purchase coefficients) – indicate the portion of total regional demand supplied by local producers • RPCs for the commercial fishing sectors, seafood dealer sectors, and processing sectors were set to zero to avoid double-counting • Effectively prevents all local industries from buying these outputs
Derivation of Model Adjustments −1 X = ( I − A) * Y $ • When the RPC for sector i is set to zero, the row elements for sector i in the A matrix ( a ' ij s ) become zero, and since −1 ( I − A) is derived by subtracting A from I, the α jj element −1 for sector i in the new ( I − A) becomes one while the remaining row elements are forced to zero • By definition, since = 1 and the remaining row elements are zero, there are no intermediate demands for sector i’s output α jj ∆ $ X j ∆ $ Y j • Therefore, the exogenous change will be fixed regardless of the origin of the change ( or a )
Page 1 and 2: Using Ready-Made Regional Input-Out
Page 3 and 4: Background: Modeling Approaches •
Page 5 and 6: Background: Modeling Concerns Conti
Page 7 and 8: Problem Continued • Commercial fi
Page 9: Limitations of Mixed Exogenous/Endo
Page 13 and 14: Values of Adjusted Industry Specifi

Using Ready-Made Regional Input-Output Models to Estimate ...

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