I'm doing an analysis of polo on a local economy. None of the institutions used in the analysis make money, they are all revenue negative or neutral entities. I've currently got the model built so that the industry spending pattern is normalized and includes only the expenditures for the entities without considering 5001 or 6001 and leaving out taxes. The coefficients currently add up to 1.0. I currently have the LPP set to 100% on everything. I then have a labor income change activities to accompany each industry spending pattern that includes the 5001 and the 6001 expenditures. On capital expenditures that are contracted out (and so I don't have the labor information) I've added an Industry Change activity with the expenditure levels of those specific industries. My understanding is that I use the normalized industry spending pattern, labor Income Change, and Industry Change activities like this. Then add the direct impact which includes the employment numbers and the combined 5001 and 6001 figures to the direct impact numbers. questions: 1. am I doing this right? Should the industry spending pattern be normalized to 1.0 like this? it is divided by the correct amount (total output minus 5001 and 6001). 2. Should I include local taxes and permits paid into the model somehow? 3. In the Labor Income Change activity, is it correct to include 6001? and then, when I want to add the direct impact back into the results, do I include both 5001 and 6001 in that labor number associated with the 5001 employment number? 4. Do I need to use the SAM local purchase percentages with a few tweaks on industries I know for sure were purchased 100% locally? or can I set them all to 100%? 5. Should I be taking the contracted out capital investments (like barn and home building) and using the Industry Change activity? Thank you.
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