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based on the technical flows matrix and the trade flows matrix. Under various
scenarios, two vectors F ( t + k ) and V ( t + k ) can be acquired or computed for period
( t + k ). Following the detailed procedures suggested by Park et al. ( 2011b ), new
vectors F ( t + k ) and V ( t + k ) and a new technical flows matrix Z ( t + k ) will be derived
for the next period.
4.5
Local and Domestic Trade Induced Impacts
As pointed out earlier, most applications of NIEMO focus solely on direct and
indirect impacts, primarily because the secondary consumption associated with
induced impacts rarely crosses State borders. However, we can expand the model
to measure two types of induced impacts: local (i.e. intrastate) and those associated
with domestic interstate trade (Park et al. 2013 ).
This requires the following manipulations of the data:
IMPLAN
D IMPLAN
INDU R IMPLAN
¼
ð
Dom Trade
Þ
ð
4
:
18
Þ
where
D IMPLAN
¼domestic trade effects ascribed to the induced effects that occurred in a
state that experienced direct impacts; this is defined as the product of
INDU_R IMPLAN and (Dom_Trade) IMPLAN ;
INDU_R IMPLAN
ratio of induced effects to direct and indirect effects via
IMPLAN in a state that experienced the impact; and
(Dom_Trade) IMPLAN
¼
total domestic trade effects for that state via IMPLAN.
Note that if D IMPLAN
¼
IMPLAN , then D IMPLAN
>
(Dom_Trade)
¼
(Dom_Trade)
IMPLAN .
The whole 509 IMPLAN sector system is translated to the 47 USC Sector system
and used for an input value set required for the second NIEMO run. Based on the
USC Sector system, we redefine
EXP NIEMO
D IMPLAN if the domestic trade is exports; and
¼
D IMPLAN if the domestic trade is imports.
Therefore, based on the total impact prompted by local induced effects within
the directly impacted state which is defined as Tr_IDCIMP, Tr_ IDCIMP exp
represents induced domestic exports effects and Tr_ IDCIMP imp represents induced
domestic imports effects. These were calculated as
IMP NIEMO
¼
Tr IDCIMP exp
EXP NIEMO
¼ LINV NIEMO T NIEMO
ð
4
:
19
Þ
Tr IDCIMP imp
IMP NIEMO
¼
ST NIEMO SLINV NIEMO
ð
4
:
20
Þ
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