Expenditure vectors for sector 3437


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    IMPLAN Support
    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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