EVENT TYPE DESCRIPTIONS:
Industry Events indicate that you know what Industry or Industries are experiencing the change in production and you are interested in targeting that specific Industry or Industries.
- There are four different types of Industry Events:
- Industry Output
- Industry Employment
- Industry Employee Compensation
- Industry Proprietor Income
- These four Industry Event Types represent each value that can be entered into a single Industry Event. Picking among the 4 types should be determined by which value you have available about the industry.
- When more than 1 value is known, those additional values can be entered in the Advanced Menu.
- Total vs Marginal Revenue selection is available for Retail and Wholesale Industries in the Advanced Menu, and will default to Total Revenue.
You would use if you knew there was a change in Commodity demand or production but didn't know what Industry or Institution (e.g., government) would meet the demand. One key difference between analyzing a purchase as an impact to an Industry versus a Commodity is that a Commodity can be purchased from multiple sources, potentially including several industries and even institutions. The sources of a Commodity in a Region are indicated by the Commodity's Market Share. Click the following link to find guidance for choosing between an Industry and Commodity Event.
For example, you know there will be an increased need for nursing home-care in the Region because of an aging population, but you don't know what the mix of private hospitals, nursing homes, and government hospitals will provide this need.
- Local Purchase Percentage (LPP) will default to 100%. This can be adjusted via the Advanced Menu.
- Total vs Marginal Revenue selection is available for Commodities that can be purchased via a wholesaler or retailer in the Advanced Menu, and will default to Total Revenue.
Labor Income Events
It can be confusing to choose between a Labor Income Event, Household Income Event or some other Event Type to analyze the impact of individuals and households gaining and spending money. Learn more about the type of Incomes in IMPLAN here.
This Event type is appropriate if you'd like to model a change in labor payments isolated from Industry production- e.g. examining the impacts of a wage increase for current employees.
Labor Income Event Value should include all new labor payments in the Region (local workers and in-commuters), including their -
i. Payroll tax
ii. Personal tax
Note: the model will automatically deduct in-commuting income, payroll tax, personal tax, savings, and imported goods and services. All payroll taxes stay in the location of the employment. That is, only commuters' post-payroll-taxes-income is deducted.
With a Labor Income Event, you can specify whether the income is earned by wage and salary employees or sole proprietors (or some combination of the two) but you cannot specify the specific household income categories receiving the income— after deductions, the remaining income is distributed across all household income groups according to the household column totals in the SAM. At this point the income is applied to the income group specific multipliers.
Household Income Events
This Event type is appropriate if you'd like to model changes in Household Income that are independent of production and payroll.
Household Income Event Values should include all new household income all residents in the region, including their -
i. Personal tax
Note: the model will automatically deduct personal tax, savings, and imported goods and services. The model assumes payroll tax and in-commuting income has been excluded from your total income entry. Benefits should be included as household income in your entry.
The leftover amount after deductions is then applied to the multipliers. In this case, you can specify the particular household income group(s) receiving the income.
Industry Spending Pattern Events
Industry Spending Pattern Events are appropriate if you have the data required to build your own spending pattern based on what your specific Industry purchases. They are also useful when an Industry needs to be modified beyond the Event customization available in an Industry Event. This is highly useful for making an IMPLAN Industry more specific to your business/impact using Analysis-by-Parts.
Institutional Spending Pattern Events
Institutional Spending Pattern Events are appropriate if you'd like to model a general change in an institutions spending such as the local governments spending on education. The value entered in an Institutional Spending Pattern should be the total value of spending on goods and services as well as spending on labor. Institutional Spending Patterns can be manipulated and edited via the Advanced Menu.
Industry Contribution Analysis Events
Industry Contribution Analysis is a method used to estimate the value of a Industry or group of Industries in a region, at their current levels of production, rather than estimating the value of a change. While the focus of the analysis still looks at backward linkages, the purpose of this analysis differs. When considering the Indirect and Induced Effects of an impact analysis, we are looking at how Industries in our Region will respond to a change in the key Industry or Industries being modeled in our Events. Industry Contribution Analysis shifts this framework to see what Industries and what level of production in these Industries is being supported by the current activity of the target Industry or Industries in the Region. Contribution Analysis is a unique method which affects a constraint upon the Model by removing feedback linkages or buy backs to the Industry being analyzed.
Find more information about Industry Contribution Analysis here to learn more and determine if an Industry Contribution Analysis Event is right for your study.
WHERE THE EVENT VALUE IS APPLIED:
WHAT EVENT TYPE GIVES YOU WHAT RESULTS:
Updated February 18, 2020