Expenditure vectors for sector 3437
I am trying to determine how IMPLAN calculates the expenditures of what would be a Labor Income change, but, in the case of an institutional spending pattern, is a provided sector. Specifically, it is 3437 that I am using to represent that institution. In the case of a labor income change, the impact is divided according to the proportions of household categories within the region and represents an induced effect. But, in such a change as determined by the scenario [url=http://mig-inc.com/Support/SupportWiki/tabid/158/Default.aspx?topic=Building+and+Using+Institutional+Spending+Patterns]here[/url], is the increase in spending of the concerned human capital (state & local gov't, non-education) an induced or direct effect? How is 0.499 of $2.8 million divided for the induced or direct effect?
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Hi Litic, Sector 437 and the other payroll sectors are a bit tricky to understand, unlike a Labor Income Change Activity these sectors do report a direct as well as an induced impact, and unlike a traditional industry/commodity change this sector has special definitions so that the total value added is = to total Output. As indicated by the detail Output results in this example, the direct payroll portion of Output is "mixed" into the first round of indirect purchases made by the state and local government institution. If you are attempting to describe the effects of the state itself, you would pull this Direct Output value (to 437) from the results and use it as your total Value Added. Likewise you would pull the 437 Direct Labor Income value for you labor income payments to state employees. The remaining direct impacts are your first round of purchases by state and local governments. As an aside, we recommend editing this sector if you are using it by zeroing the OPI value, and making Output = to Employee Compensation (this allows you to capture the leakage due to depreciation, which is not a budget item but rather a bookkeeping item for calculation of GDP.
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