Incorpation of Upstreams and Downstreams


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    Jenny Thorvaldson
    Pipeline construction falls under sector 36, so if you are just looking for a multiplier, that would be the best sector to use. However, Sector 36 also includes a wide variety of other activities, incluing airport runways and power plants (see attached spreadsheet), so we often recommend using the "Water, sewer, and pipeline construction" spending pattern from IMPLAN's old 509 sectoring scheme: 1. In the Impact Setup screen of the software, go to Setup Activities > Import > From Another Model, then browse to the Utilities folder on your appliance (in the Implan User Data folder) and select the "Operations_Patterns_for_509Industries" dummy model to select the new construction highways and street. 2. Click on the activity name, then click Edit Activity and enter your entire budget amount as the Activity Level. Or you could normalize the events (Event Options > Change All > Normalize Events) and then set the Activity Level to just the non-payroll portion of the budget. Note that this would be an "analysis by parts". You would be modeling the spending on goods and services - the indirect effects only. You would also need to set up a separate Labor Income Change Activity for the payroll portion of the budget to get the induced effects. Finally, you would also need to add the direct effect back in - the construction workers themselves and the value of the project. We suggest verbalizing it: e.g., "There were $X worth of pipeline construction projects which required Y construction workers with $Z payroll that in turn supported X,Y,Z additional local economic activity (whatever the indirect and induced impacts were in the IMPLAN reports). There is a tutorial on Analysis-By-Parts in this pdf file: In response to your specific questions: The production functions for new construction include all materials that are integral to the structure and all equipment needed to construct the structure. You are encouraged to either a) model these costs separately or b) modify the coefficients in the Industry Spending Pattern to reflect these costs' proportion of the total budget or non-payroll budget, depending on whether you normalized the spending pattern or not. [attachment=235]Construction_Sector_Descriptions_440_2011-12-06.xls[/attachment]
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