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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.