Indirect Effect (I-O)

The subsequent ripple effect in further supply chains resulting from the direct change. In more awkward terms, this shows the sales change in the supply chains of the supply chain, as a result of the direct change. This is the second round of impacts. This change is due to inter-industry effects.

See also Initial, Direct, and Induced Effects.

Source: Emsi’s model, incorporating data from the Bureau of Economic Analysis (BEA).