Custom Events
I have created several custom events within an activity to mirror an existing business. Can someone explain to me exactly what is going on when I set the employment numbers and compensation to custom values? For example, I can see that reducing the headcount numbers in a few industries increases the effective employment multiplier. This makes sense to me, but I'd like to better understand the specific mathematics.
Also, I would like to confirm that using the "Industry Change" designation is the correct way to analyze the economic impact of an existing corporation.
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Hi Laura, Thank you for your post. As clarification, by effective Employment Multiplier, this is when Direct Employment is changed, since the Multiplier calculation is Total Effect/Direct Effect you change the Multiplier. However, it is important to note that changing Employment other than changing the values in that exact equation doesn't modify anything else in the analysis. This can be tested by changing Employment and seeing that the remainder of the analysis isn't affected. When you change the Employment and Employee Compensation values, you are changing the Output and employee compensation per worker values for that particular industry only. The math behind this calculation is: Output Divided by Employment= Output per Worker Employment Compensation divided by Employment = Employment Compensation per Worker If you do not mind telling me more about your study and how you setup your study; I can provide you suggestions and recommendations. As depending on the specific firm or industry, you can setup this analysis in several manners. The traditional contribution analysis is done when the business or firm represents the entire Industry Sector. The reason is that you will need to constrain the buy backs from that Industry. As in the end your firm/business's Output value should not be more than your Industry's Total Output. The Industry Change Activity is an appropriate methodology, unless the firm makes up most or all of the Industry. This can be determined by looking at the size of the firm's production and comparing that to the Sector Total Industry Output in the Study Area Data> View By: Industry Detail Thanks! I have included an article on how we recommend to conduct a single industry contribution analysis in the IMPLAN Pro software: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=211 the following is a multi industry contribution analysis: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=366
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