Certain IMPLAN Sectors require additional explanation, either because they are not NAICS based or they have special properties. Below are the special Sector descriptions (sector numbers are based on the 546 sector scheme for 2018 IMPLAN data sets).1
SECTORS 50-59: CONSTRUCTION
IMPLAN construction Sectors are classified by structure type (Census definitions) rather than NAICs codes. For this reason, Sector searches for construction will not pull up corresponding IMPLAN Sectors. Thus, when working with Construction Sectors, the Definitions of IMPLAN's 546 Construction Sectors can be helpful.
SECTOR 449: OWNER-OCCUPIED DWELLINGS
This Sector estimates what owner/occupants would pay in rent if they rented rather than owned their homes. This Sector creates an industry out of owning a home, and its production function represents repair and maintenance of that home. The Sector's sole product (Output) is ownership and is purchased entirely by personal consumption expenditures (i.e., the household Sector).
There is no Employment or Employee Compensation for this industry. Taxes on production for this Sector are largely made up of property taxes paid by the homeowner, while Other Property Income is the difference between the rental value of the home and the costs of home ownership. Interest payments and mortgage payments are a transfer in the SAM and are not part of the production function for this Sector.
Sector 449 is included in the database to insure consistency in the flow of funds. It captures the expenses of home ownership such as repair and maintenance construction, various closing costs, and other expenditures related to the upkeep of the space in the same way expenses are captured for rental properties.
SECTOR 525: PRIVATE HOUSEHOLDS
While not a true special Sector, there are often many questions regarding what Sector 525 produces. This sector covers live-in household staff: maids, butlers, chauffeurs, etc.
SECTORS 526-534: GOVERNMENT ENTERPRISES
IMPLAN Sectors 526-534 represent government agencies that cover a substantial portion of their operating costs by selling goods and services to the public. They operate much like private sector firms, hiring labor and purchasing other inputs to produce goods that are sold through markets. Other Federal\State\Local government enterprises (i.e., those other than postal, electric utility, and transportation services) include things such as government owned and operated liquor stores, airports, sewer and sanitation services, gas, and water supply2. This differs from Administrative Government sectors (components of consumption - i.e., final demand), because administrative do not respond to local market demands.
SECTORS 535-538: COMMODITY ONLY SECTORS
IMPLAN Sectors 535-538 are Commodities not produced intentionally by any US industry:
- Used and secondhand goods are goods that are traded but were not produced during the current year. While used goods are not part of the current-period gross output of the economy, they are part of the supply available for consumption. They come from capital, government institutions, and households.
- Scrap consists of commodities that are cast off as part of a production process and then resold. Examples include sales of used aluminum cans to recyclers and sales of scrapped vehicles to metal recyclers.
- Rest of world adjustment "The rest-of-the-world adjustment to final uses consists of values for exports and imports that have offsetting adjustments to personal consumption expenditures (PCE) and government… This adjustment is required in order to conform the commodity treatment of the I-O use table to the expenditure concepts used for final uses in the NIPAs. This is accomplished by making offsetting adjustments between PCE and gross exports and between Federal Government nondefense purchases and exports and imports…For example, foreigners traveling in the United States consume goods and services, such as accommodations, that are included in the source data for PCE. In order to put the PCE estimate on a NIPA basis, an adjustment is made to account for these purchases."3
- Non-comparable foreign imports are goods that are not available anywhere in the nation. They consist of three types of services: (1) services that are produced and consumed abroad, such as airport expenditures by U.S. airlines in foreign countries; (2) service imports that are unique, such as payments for the rights to patents, copyrights, or industrial processes; and (3) service imports that cannot be identified by type, such as payments by U.S. companies to their foreign affiliates for an undefined basket of services.
SECTORS 539-546: ADMINISTRATIVE PAYROLL SECTORS
Administrative government activities (e.g., legislatures, police protection) are not subject to local market forces (i.e., not driven by local demand); as such, they are held exogenous to the multiplier model.
IMPLAN Sectors 539-546 represent the payroll/value added of these administrative government Sectors. This is necessary because, while the Commodity purchases of these government institutions are already represented in the SAM, there is no payroll Commodity; thus, these Sectors are included as a bookkeeping element to account for these institutions' payrolls. By definition, these Sectors have no intermediate purchases and thus will not generate indirect effects. For these sectors, Employee Compensation or Employment should be used as Event values; entering the operational value of the government as an Output value will greatly overestimate the impact. When modeling government programs or budgets, you will need to use the appropriate spending pattern associated to the budget activity.
NON-SECTORS: GOVERNMENT INSTITUTIONS
Government Institutions in IMPLAN do not have Sector designations. Instead, they can be modeled from the Impacts screen using an Institutional Spending Pattern Event. For details on how to edit and use these, visit Editing Institutional Spending Pattern Events. The following governmental spending patterns are available.
- Federal Government
- State/Local Government
- Inventory Additions/Deletions
1 The IMPLAN Sectors discussed in this document correspond to IMPLAN's 546 Sectoring scheme, in place since 2018. Bridges from the older Sectoring schemes to the 546 Sectoring scheme can be found in the article 546 Sector Industries, Conversions, Bridges, & Construction - 2018 Data.
2 Post exchanges are a type of store operated at U.S. Army bases by the Army and Air Force Exchange Service. Post exchanges provide merchandise and services to military families and generate income for military programs that provide social services, recreation, sports, and entertainment.
3 Horowitz, Karen and Planting, Mark. Concepts and Methods of the U.S. Input-Output Accounts, United States Bureau of Economic Analysis, April 2009, pp. 7-9 to 7-11.
Updated November 22, 2019