The Accounting Model: I-O Model And Income Model

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I-O model and IMPLAN An economy consists of various inter-dependent sectors. An output of a sector is the sum of demands from all sectors (Abt et al. 2002). Based on interdependencies amongst sectors, input-output model can predict impacts in other sectors of the economy caused by changes in one sector (Leontief 1996). IMPLAN (Impact Analyses for Planning) is an economic simulation model which is based on input-output model. It was originally developed by the United States Department of Agriculture (USDA) Forest Service in cooperation with Federal Emergency Management Agency and the University of Minnesota to analyze the forest plan alternatives in national forests (Abt et al. 2002). It consists of regional data that are collected from different…show more content…
Therefore, individual restoration activities were assigned to related NAICS codes and then to IMPLAN sector codes. Timber sales were also included in the analysis of economic impacts assessment. Reports of timber sales were collected from the U.S. Forest Service. Based on type and volume of the timber sold, delivered value of timber was calculated using timber mart south. Bid value of timber sales or the money received by the Forest Service was not used for the analysis because that money is collected as a fund and we did not have any idea about when and how that money would be spent. Regional and national base economic models were constructed in IMPLAN. Data collected on Shortleaf-Bluestem expenditures and timber sales for economic areas were entered as an additional shock to respective economic models. Then, IMPLAN was run to estimate the economic impacts of the restoration project within the regional and national economies. Economic impacts were determined in terms of number of employment, output, value added, labor income, and multipliers

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