Bark processing facility

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17 comments

  • Avatar
    jenny
    I think sector 103 would be appropriate. You can make the sector exist by following these steps: 1. Go to Customize > Study Area Data and scroll down to sector 103. 2. Enter 40 into the Employment box, then click Update. This will fill in all the remaining fields using national per-worker ratios. 3. Zero out Proprietor Income (since this is a corporation) and edit any other values for which you have data, then click Update. 4. Click Save. 5. Go to Options > Construct > Multipliers Since the veneer is purchased from local veneer manufacturers, you will want to adjust the RPC for veneer for sector 103: 1. Go to Customize > Trade Flows > Industry/Institution RPC tab 2. Select commodity 3096 from the drop-down menu, then in the top box scroll down to sector 103 and set its RPC to 1.00. 3. Click Save. 4. Go to Options > Construct > Multipliers Finally, run an Industry Change Activity on sector 103 using your Employment figure.
  • Avatar
    ndennis
    Thanks, Jenny. I infer that your suggested steps for modifying IMPLAN data would generally apply to other edits I determine are needed. Correct?
  • Avatar
    ndennis
    Your statement: "zero out proprietor income (since this is a corporation)" raises questions for me in reference to sector #96 for Siskiyou County (plywood and veneer mfg.). IMPLAN shows almost zero PI for #96. Is this because the veneer manufacturers are corporations, or is it because they are corporations headquartered oustide the region (i.e., county)? If corporations can't accrue PI, what IMPLAN category accounts for corporate profits? Does PI depend on whether the proprietor is located in the region? Or can PI be exported? If PI is a substantial component of value added, shouldn't it appear as such in the social accounts even if the owner is a corporation headquartered outside the region? Wouldn't "zeroing out" PI result in understating value added?
  • Avatar
    DougO
    Correct. Keep in mind that editing (customizing) must be done in the order shown in the menu. If you edit the trade flows then edit study area data (out of order) the trade flows will be overwritten using the new study area data.
  • Avatar
    DougO
    Proprietor income is probably low because very few are not corporations. If you are zero'ing proprietor income in study area data, then add that value to other proprietor income as both are indicators of operator's surplus. If you are doing it in the event line, the implication is that the difference is transferred to OPI and is a leakage.
  • Avatar
    ndennis
    Why don't corporations get PI? Where do exported corporate profits show up in value added?
  • Avatar
    DougO
    Corporate profits show up in other proprietor income (OPI). Input-Output traditionally treats corporate profits as a leakage. If you know stockholders are local or that the corporation will re-invest locally you can model that in addition, but most analysts do not have that information.
  • Avatar
    ndennis
    Doug--Say, for example, corporate profit accounts for 5% of an industry's TIO, but it leaks out of the region. Where does it show up in the social accounts? Value added plus commodity demand has to equal TIO, right? But if profits are excluded from value added, how does it add up?
  • Avatar
    DougO
    It is part of value added. However, it is excluded from the rounds of iterations that create multipliers. Therefore, it is a leakage like imported goods and ibt (unless government institutions are incorporated as part of the SAM multiplier). If you want to see how OPI (which is mostly corporate profits) is handled in the SAM - Explore > Social Accounts > IxC Social Accounting Matrix (tab).
  • Avatar
    ndennis
    I'm looking at the OPI column in the IxC Social Accounting Matrix for Siskiyou County. It shows -$35 MM in domestic trade. Does that mean that exported corporate profits were roughly -$35 MM?
  • Avatar
    DougO
    It is an accounting balance that allows us to control to the NIPA total which is on a GDP basis. Proprietor Income is distributed to households government etc, but distributions are greater than the NIPA value forcing the negative imports. It would be more satisfying to put that in the proprietor row as a positive payment by trade to proprietors indicating a foreign source of income (ie, a negative import corresponds to a positive export) but then the row and column total, while balanced, would be greater than the NIPA GDP value.
  • Avatar
    ndennis
    Where is the "Customize" tab?
  • Avatar
    DougO
    It isn't a tab but a menu item, either at the top of the window or along the left side. If you do not see it, you may have the default preferences. Go to File > User Preferences > Analysis (tab) then check the "Enable Model Customization" box.
  • Avatar
    ndennis
    I'm talking about OPI; not PI. I looked at the OPI domestic trade amounts for each industry. Only 20 of them are negative, and they sum to much less than $35MM. What does -$35 MM in OPI domestic trade mean, and which industries account for the large negative number?
  • Avatar
    DougO
    Same meaning for OPI as for PI. We do not have data for import of OPI by industry. All of the industry data in the Study Area data is for local activity only. Which report are you looking at that shows OPI trade by industry?
  • Avatar
    ndennis
    I'm looking at Study Area Data > Industry Detail. Here's the key question on this issue: Say I estimate corporate profits for #96 at $5MM, all of which is exported. Should I then set OPI for #96 to $5MM to represent this export of profit?
  • Avatar
    DougO
    If the profit is $5 million, then yes set OPI to $5 million. I-O treats all corporate profit as a leakage in the creation of multipliers. OPI will cause no further local impact. If you knew OPI was spent locally, then you would have had to introduce a new impact (household spending, new investment(?)) in order to allow that profit to impact the region.

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