Normalize Events - Bug?

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orkneyroad

• January 28, 2011 01:13

I have a model with several activities based on industry/institution spending patterns. For one activty, with a newly imported spending pattern, I noticed that the event value was a fraction, say .34. I found the "normalize events" command, and found that it converts the coefficents to equal an event value sum of 1.0 for the activity. Is this the correct useage? My concern is that it seems that when I "normalize events", it appears to change the coefficents in ALL of my activities in the model, not just the one being edited. Is this expected?

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  DougO

  • January 28, 2011 01:19

  It depends - When you import an industry spending pattern, you get the coefficients of spending on goods and services per each dollar of revenue/sales. In your case: .34. Therefore, for that industry 66 cents of each dollar (1-.34) went to value added -ie, payroll, taxes and profits. If you are plugging in non-payroll spending as the activity level, then you want the sum to be $1 (normalized). If you are plugging in gross output as the activity level, then you want the sum to be $.34. Also, you will need to run the payroll separately to get the impact of the payroll in either case.

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  orkneyroad

  • January 28, 2011 01:25

  That's what I thought. When I import Industry A spending pattern as Activity A, and normalize events, the sum of the coefficients is changed to 1.0. Then I import Industy B spending pattern as Activity B, again the sum of coefficients is changed to 1.0. But when I go back and review Activity A, the sum of the coefficients is no longer 1.0. It has changed, not to the original sum, but some other number.

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  DougO

  • January 28, 2011 01:33

  I'm able to replicate the problem, I'll have Scott take a look. Thanks for bringing it to my attention.

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  orkneyroad

  • January 28, 2011 03:51

  As I am double checking the numbers in other activities, I think that the event values in other commodity and industy change activities were also changed by the Normalize command.

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  DougO

  • January 28, 2011 05:13

  I checked that, it only seems to affect common activity types - ie, the "Industry spending pattern" (my "industry change" activity type was unaffected). Scott has found the bug and it will be corrected in the next update.

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  orkneyroad

  • January 28, 2011 07:09

  I found problems with event values in "Labor Income Change" activities, "Commodity Change" activities and "Household Income Change" activities.

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