Both Type I and Type II multipliers measure the industry impact of a change in final demand; however, Type II multipliers also include the induced impact, known as the household spending impact. It is important to exclude the inputs described below when using Type II multipliers to avoid double counting the household spending impact.
- When using Type II final-demand multipliers, it is important that the change in final demand (sales) excludes purchases by households in the study region.
- When using Type II direct-effect employment multipliers, it is important that the direct jobs estimate excludes the jobs used to produce the goods and services purchased by households in the study region.
- When using Type II direct-effect earnings multipliers, it is important that the direct earnings estimate excludes the earnings used to produce the goods and services purchased by households in the study region.