Customizing Study Area Data

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    IMPLAN Support
    Hi Daniel, We experience the same thing on our end. Thank you very much for bringing it to our attention - we will have it fixed as soon as possible. In the meantime, you can simply adjust the Value-Added components yourself - I suggest doing so proportionately unless you have additional information. Thank you!
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    soungl
    Thank you for your reply. I'd like to just confirm a few things. 1. adjusting the Value-Added components for correction In my hypothetical example (as in the attachment), correction should be made to the case where Lock is checked. In order to correct this, the Value-Added components should increase so that the sum of (Total Value Added) and (total Intermediate Expenditures) = (Output). Am I correct? 2. underlying production function Since the ratio of Value-Added and Intermediate Expenditures changes when Lock is checked, can I conclude that the underlying production function changes? If so, this contrasts the scenario where a Value-Added component changes, in which case the underlying production function changes when Lock is unchecked. 3. SAM multiplier Should I wait until this is fixed to estimate indirect/induced impacts? How will I know when it's fixed? Thank you so much.
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    ryanlee
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    IMPLAN Support
    Hi Daniel, We apologize that this screen is so confusing. In answer to "correction should be made to the case where Lock is checked" the answer is yes, you will want to adjust this. You are also correct on the fact that Output = Intermediate Expenditures + Value Added. The key to figuring out exactly what to modify will depend on what you are trying to do. Are you trying to modify the ratio of Value Added : Intermediate Expenditures? If not then using it in the unlock would be the ideal method. If so are you trying to increase the Value Added relative to Intermediate Expenditures? If so then you can certainly balance it out this way, but if not then that poses a different problem. If you want to balance it out without affecting the Value Added portion of an analysis you can do by adding to the Other Property Type Income field, as this field is treated as leakage from the Model. The reduction in Intermediate Expenditures doesn't change the ratios of the Intermediate Expenditures relative to one another, just the total value of those expenditures. So if the ratios of the Intermediate Expenditures for a production function were 2:4:8:2:6 then they would always stay in same relative proportions they would just change in magnitude (e.g. 1:2:4:1:3, 0.5:1:2:1.5, etc.) but again this may not be what you are trying to accomplish (changing the underlying ratio of Value Added : Intermediate Expenditures). If all you need to change is the Output per Worker, and you don't need to change it for every purchase in the region, you may want to consider simply editing the Event relationships, or depending on what you are trying to do, you may want to choose to do Analysis-by-Parts to circumvent the issue altogether. With Analysis-by-Parts, you can control all the elements, and you can still calculate a study Multiplier. But you will not be affecting the rest of the regional Multipliers. Please let us know if you need additional information about Analysis-by-Parts or if you would like us to help you to consider this methodology further. Unfortunately we can't recommend waiting as we aren't sure exactly when the update might be released. Below is some additional information on modifying Value Added factors in the Customize screens. You have documented most of this already but just to hopefully clarify further, here is a description of what is generally going on and how you can go about working with it: When Lock is unchecked: You are telling the software that you want to increase the ratio of Value Added relative to Intermediate Expenditures. The Intermediate Expenditures are shifted down to compensate for the increased Value Added numbers (or down if you are making the Value Added factors smaller) because as you stated, the equation must sum to 1.00 (which Total Industry Output). Since there is an increase in the Value Added component of Output = Intermediate Expenditures + Value Added but no compensory increase in Output then the value of Intermediate Expenditures must decrease. Small rounding issues will cause some shifts in the other numbers as well. However this doesn't change the ratios of the Intermediate Expenditures relative to one another, just the total value of those expenditures. So if the ratios of the Intermediate Expenditures for a production function were 2:4:8:2:6 then they would always stay in same relative proportions they would just change in magnitude (e.g. 1:2:4:1:3, 0.5:1:2:1.5, etc.) When Lock is checked: You are telling the software you want the Value Added: Intermediate Expenditures ratio to remain constant. Since the ratio of Value Added : Intermediate Expenditures cannot change then the alterations you make to the Value Added components must be balanced by other elements of the Value Added equation (Value Added = Employment Compensation+ Proprietor Income+ Other Property Type Income+ Taxes on Production & Imports), assuming that Output isn't changing. Typically the field that we recommend using as a balancing agent if you are not sure where the remaining Value Added amount should go is Other Property Type Income as this field is not used in the analysis. I apologize for the long response. Thanks!
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    soungl
    Thank you for your thoughtful response. I do have a rather detailed survey data, which includes employment, payroll, output, and intermediate expenditure by category. So I would like to see if I can customize not only components of Value Added (VA) but also the ratio of VA and Intermediate Expenditure (IE). I have decided not to change output per worker, though. In the lock, when a VA component changes, Other Property Type Income (OPTI) updates so that the ratio of VA and IE remains the same. In the unlock, however, IE instead of OPTI, automatically updates. It results in a change in the ratio of VA and IE, which I would like to adjust to the ratio found in the survey. Can I adjust OPTI to do this? Thank you so much.
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    IMPLAN Support
    Hi Daniel, We recommend that for your analysis you use the Advanced Modeling technique of Analysis by Parts: http://implan.com/index.php?option=com_content&view=article&id=373. Thanks!
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