I am running the non-payroll operating expenditures through an industry spending pattern for sector 391 for an area defined by 8 zip codes. When I set the activity level equal to the non-payroll operating expenditures, does the model assume that the entire amount is spent in the 8 zip code area? Since the LPPs of the sectors within the industry spending pattern vary, can you confirm if the model assumes that a portion of the expenditures are being spent outside of the 8 zip code area? Or does the model assume the entire amount is spent in the 8-zip code area? Thank you.
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