Construction costs- labor only

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    jenny
    Okay, here's what you need to do: 1. Run the Labor Income Change activity with two events: one for the commuter-adjusted EC and one for the commuter-adjusted PI. This will give you the induced effects (i.e., the effects of the local labor spending their paychecks). 2. Create an Industry Change activity. Enter your total employment value and IMPLAN will populate the rest of the fields. Take note of the Output - this is your direct Output. Next, edit the EC and PI fields to match your commuter-adjusted figures, then run the impact. The only results you want to grab from this impact are the direct tax impacts. All other results should be ignored. Now you have direct Output, Employment, EC, PI, and taxes from the Industry Change activity and induced Output, Employment, EC, PI, and taxes from the Labor Income Change activity. All indirect effects occur elsewhere.
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    walker
    Thank you Jenny! Just one question: You stated in 1. that the results of the Labor income change activity would give me the indirect effects, but later you say that that activity gives me the induced effects and that all indirect effects occur elsewhere. Can you clarify?
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    jenny
    My apologies Susan, I mispoke in 1. It should say induced.
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    walker
    Where do the indirect effects occur?
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    jenny
    Since no inputs are purchased in AZ, there are no indirect effects in AZ.
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    walker
    Sorry, I thought you meant elsewhere in the model, not elsewhere in the world!:) THANK YOU FOR ALL OF YOUR HELP ON THIS TOPIC!!!!
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    walker
    How can I calculate commuter adjusted PI? In the PI column in the SAM there is no value in the domestic trade row, which I thought meant no in-commuting, but I know that the contractors will commute in from other areas at a rate of 70% for my project.
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    walker
    ok, I think I figured that out, but when I try to develop a Labor Income Change activity with two events, as described earlier in post #10818 the software will only let me create one event, not two (either EC or PI). Am I doing sothing wrong?
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    jenny
    Try clicking the New Event button.
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    walker
    It is grayed out- it will not let me click new event!
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    jenny
    Hmmm, that is strange. One thing to check is to make sure you have the latest version of the software. The version of your software can be found under Help > About. The latest version of the software is 3.0.14.2. You can download the latest updates by going to Help > Check for Updates. If going to Help > Check for Updates doesn't get you up-to-date, you can download and run the update manually from here: http://implan.com/V4/index.php?option=com_docman&task=cat_view&gid=160&Itemid=7. Otherwise, try closing the model and re-opening it. Let us know if neither of those do it for you. Worst case, you can run them as 2 separate scenarios and sum the results.
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    walker
    In post #10818 point #2 you state that I should input total employment. Do you mean the commuter adjusted employment? Because if I input the total employment I would just get my original $20 million as the direct output and, as I mentioned in the original post, none of the equipment/ supplies would be purchased in the study area and only 30% of the labor would come from AZ. If I am supposed to input the total employment how do I interpret the $20 million in direct output?
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    jenny
    In construction impacts, direct Output is the value of the structure, which includes all its component parts, the labor and equipment required to put it together, the taxes paid as a result of its construction, and any profits made by its construction. Since the structure is located within the study area, its value belongs to the study area. Since you are only using this particular impact to get the direct Output and IBT (and are thus ignoring the indirect and induced effects from it) it is fine.
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    walker
    In regards to post # 10818, how can I determine the direct value added number?
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    jenny
    Output = Intermediate Expenditures + Value-Added. So you can just subtract $10 (your IE) from the direct output from the analysis in post #10818 to get VA. Alternatively: VA = Labor Income + OPTI + IBT. You already have the direct Labor Income value. The analysis in #10818 will give you the direct OPTI and IBT. Just go to the Detail Results tab and click on the "View By:" drop-down menu. Sum them all to get VA.
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    walker
    If I wanted to run a scenario that included this particular construction project (using the methods described in post #10818) plus one or two additional activities, how would I do that? Since there are two model runs required to obtain the construction impacts and only certain data is created from each of those runs how would I do that if I wanted to also include some other activities reflecting operations? Especially since construction would be temporary and operations would be an on-going impact? Can you run temporary construction and permanent operations activities in the same scenario?
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    jenny
    Construction and operations are separate analyses and the results cannot be summed, as the former is a one-time impact and the latter is an annually recurring impact.
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    walker
    What if the operations inputs are not on an annual basis, but are the sum over a specific period of years? Then can you add the two or put them in the same scenario run?
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    jenny
    You could, although it seems to muddy the interpretation of the employment impact a bit since some of the jobs last for just a year or two while others last longer. If you do sum them, you could depict the employment impact as cumulative man-years of labor over a period of XX years. You could also divide the employment impact by XX years to get the average annual job impact.
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