This is a documentation memo for Menon’s ripple effect model, the ‘ITEM’ – ‘International Total Effect Model’. The memo does also provide an introduction to ripple effect methodology.

Menon’s international total effect model, «ITEM» for short, is a ripple effect model designed to illustrate ripple effects in Norway and internationally. The model calculates ripple effects in each consecutive of the value chain, by country and by industry, in terms of value creation, turnover, employment and six types of tax revenues. The basic model shows gross ripple effects through the value chain; yet it could be extended both to illuminate net ripple effects and externalities, depending on the research question. More generally, ITEM is very flexible with regard to the industries and phenomena one wishes to study.