Deadline and leaks from MSA

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    IMPLAN Support
    Hello, Yes, IMPLAN takes into consideration a commuting rate. If you built a model with a single county, it will have a bet commuting rate built in. In regards to the values entered into IMPLAN, it depends on what you are modeling. If you are modeling an Industry Change, IMPLAN automatically assumes that you chose the Model region because the purchase or sale is occurring in the region. Could you provide more detail on what you are trying to accomplish? What we need to know in order to provide further help is if you are impacting from the subcontractors standpoint, or the construction Sector’s standpoint. If you are modeling this using one of the Construction Sectors, the subcontractors will be bought at their appropriate RPC rate and then the income for each of these subcontractors will have the commuting rate applied. If you are modeling the subcontractors, then you would use the Employee Compensation and adjust the input values to the commuting rate, if there is one and then included the Labor Income in the Event. See JTW File: [url=http://www.implan.com/index.php?option=com_content&view=article&id=218&Itemid=1797]Calculating Commuting Data[/url]. Please let us know if you have additional questions. IMPLAN Group Staff
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    econimplan
    LEAKS FROM MSA The industry is a university (473). Another firm operates the food service. The payments are sent to a distant MSA. Much of the money comes right back to the local MSA to pay employees who live in the MSA. The university sends payments to the health insurance company in a distant MSA. That same company pays for claims by University employees in the MSA and many employees of other firms in the MSA. Should I exclude these payments which leave the MSA and assume they are counted in the results? Also will the employees of the food service firm show up in the employment impact? or should I add them? I assume that I can plug in an industry change estimate and when I get the final numbers I can scale all of the results using the ratio.
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    IMPLAN Support
    Hello, Looking at the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and select the Commodity Demand tab for Sector 473 you'll note they don't make a large purchase to foodservices (16th purchase sorted by Gross Absorption) but they do certainly purchase it. Thus how you handle it may well depend on the information that you have. If you have enough detail that you want to split it out rather than use the Model estimation you could certainly do an Analysis-by-Parts where you imported the spending pattern for 473, removed the Event for 501 from the spending pattern and normalize the remaining Events through the Events Options> Change All> Normalize Events. You would then use the goods and services budget spent on all the commodities less foodservices as the Activity Level, and you could run the university Labor Income as a Labor Income Change (again IMPLAN will account for net regional commuting, or you can adjust this based on the SAM data). You could then model the foodservices component as an Industry Change for 501 with your know values, remembering that these will be Indirect Effects relative to the university. By definition Employment is job site, and income expenditures are based on where people live. So if the employees are local, even if their management firm isn't then you should need to worry about modifying their income, but the issue as you noted is that the full value of the foodservice operations is not local. However, if you look at the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab for Sector 501, sorted by Gross Absorption you'll note the largest payment is to management companies- thus 'home offices' of satellite facilities, are accounted for. In this case since you know that the RPC (the local availability of purchase) is zero for management companies, you could also choose to do an Analysis-by-Parts on this spending pattern and set the Local Purchase Percentage field to User LPC = 0. In this case, unless you wanted to change anything else in the spending pattern, such as adjusting the home office coefficient) you would not need to do any extra work with the spending pattern and could just use the Output value as the Activity Level and then run the Labor Income Change for the foodservice company based on regional adjusments as noted above, taking into account that it's the where the workers live rather than where the home office is, that require adjustments to the Labor Income rate. Hopefully this helps. Please let us know if you have any additional questions, Thanks, --Implan Support Staff
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    econimplan
    Do i use the same general method for construction. The university paid about $8 million to a firm in Cincinnati. I have no idea how much of that went to local labor and supplies. What is your solution for that?
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    IMPLAN Support
    Hello, Unfortunately without additional information this is extremely challenging. You would need to have some method exogenous from the Model to know how much local Labor Income was paid, and how much was paid to contractors. Construction adds extra complexity when it's with a contractor outside of the regions because, they may also purchase less local intermediate demands than a local construction company because they could have connections in other regions where they contract for their inputs. Thus without additional information for construction it can be very hard to tease how much, if any of the impact of the construction was local. Best regards, IMPLAN Group Staff

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