Induced Effect (I-O)

This change is due to the impact of the new earnings created by the Initial, Direct, and Indirect changes. These earnings enter the economy as employees spend their paychecks in the region on food, clothing, and other goods and services. In other words, this figure represents the income effects on inter-industry trade.

See also Initial, Direct, and Indirect Effects.

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