Modeling change in population and households

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    DougO
    Using Labor Income Activity Type is the easiest way to accomplish this. I would use the average labor income per worker for the region times the number of commuters you are "internalizing" and apply it to the Labor Income Activity Type: Employee Compensation event. The software will remove all taxes and savings and imports and apply the remainder are expenditures by households. Note, that more than half of the labor income will likely leak out before being applied to the multipliers. Also, by definition, impacts caused by Labor spending is induced effect, so the "direct" and indirect impacts will be transferred to the induced column. An alternative is to Activity Options > Import > Institutional Spending Pattern > then choose an income class. Using the average Labor income per worker makes sure you have included all "other labor income" (ie, benefits) which is necessary. But you will need to remove all taxes and savings yourself before setting the activity level.
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    jdempster
    Thank you. Would it also work to change household income spending (I have the number of households)? Are taxes, savings, etc also removed from this amount, as for the labor income method? I am just hoping to better understand the difference between approaches - it appears the HH income spending might allow for more income detail regarding the additional residents.
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    jdempster
    Sorry to post another question late, but why do I not see any changes in any housing construction sectors? Can you indicate other sectors that may account for this type of activity? I'm asking because this is a key issue for some stakeholders. Thanks.
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    DougO
    New residential housing is an investment (a borrowing on current and future household income streams) and is not part of the household spending pattern - although expenditures required to operate the home are. You will need to model the construction of the new housing separately.
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    DougO
    The labor income activity type also uses the household spending pattern to distribute the disposable household income (income after all taxes and savings).
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    jdempster
    I'm not sure I understand this response - do you mean that the household income change activity type distributes disposable hh income in the same way as the labor income activity? Can you confirm that the HH income activity type performs similarly to the labor income activity approach, but allows me to specify the amount of spending by HH income group? This is important to our stakeholders, as they consider many in commuters to be part of higher income brackets. Thanks!
  • Avatar
    DougO
    Labor income activity removes social insurance taxes (social security and medicare), the household income activity type does not as the software can not assume the income was received via working. There are 3 ways to run the household spending: 1) Setup Activities>New Activity>Select Type of Activity- "Labor income change". This transfer money to local households net of social insurance taxes which are transferred to State & Local and Federal Governments. The local household income is in turn run through the SAM to remove savings, income taxes (and other taxes) and imports. The remaining disposable income is applied to the multipliers based on the household spending pattern. All impact results are displayed as induced effect. 2) Setup Activities>New Activity>Select Type of Activity- "Household income change". This runs the money through the SAM to remove savings, income taxes (and other taxes) and imports. The remaining disposable income is applied to the multipliers based on the household spending pattern. All impact results are displayed as induced effect. 3) Setup Activities>Activity Options>Import>Institution Spending Pattern - choose a household sector. This runs every dollar specified in the activity level through the household spending pattern. So you would set the activity level only to equal the disposable income. The spending is shown as "direct" effect with resulting indirect and induced effects.

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