A comparison of two input-output approaches for investigating regional economic impacts of the forest products industry in the Pacific Northwest and the South

An input-output analysis using IMPLAN was employed to examine forest-based industry contributions to regional economies of the South and Pacific North west regions of the United States and to illustrate differences between the standard "per dollar" approach of input-output modeling and a "per unit of output" approach. The total regional impact of the forest-based industry o n the South's economy is approximately five times that of the industry in t he Pacific Northwest. The industry's impact as a percentage of the regional economy is substantially higher in the Pacific Northwest. Output, employme nt, personal income, and value-added multipliers were computed to depict ma rginal economic impacts due to changes in output on a per dollar basis. Wit h the exception of employment, the industry in the South has higher multipl iers than the industry in the Pacific Northwest. The incremental impacts pe r million board feet (MMBF) of timber delivered by each region's logging se ctor to forest-based industries were computed. Incremental impacts to the P acific Northwest economy per MMBF change in the amount of timber delivered are greater than in the South. Comparing regional economic impacts employin g standard multiplier analysis can be misleading because of regional differ ences in input and output values. Examining incremental contributions to re gional economies from per unit changes in forest-based industry demand for timber on a per MMBF basis more accurately illustrates the effects of chang es in national timber harvest policy.