valuing a single industry in a region

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    IMPLAN Forum
    Hi! Thank you for your forum post. Welcome to IMPLAN! From your post, it sounds as if you have built your Model and you are exploring the background data on the multi region on which you built your Model. This lends itself to great information on the region. IMPLAN's defines Direct Effect: as an estimate the economic impact of an initial change in the local economy. The information in the Study Area Data is how the economy performed in the specific data year. To move to the next phase in your study, where you enter your direct impact so that you can see the Indirect and Induced; you will need to go to the Activities Screen. This will allow you to create your new Activity and then Event. I have included a few articles from our Quick Start Guide to walk you through this screen and the next screen (Scenario): http://implan.com/index.php?option=com_content&view=article&id=58&Itemid=1753. From your post, it sounds as if your study is on the impact of eliminating forest products? If so, as long as you have an input value for what that loss is expected to be; you can enter that into the Event. IMPLAN has 4 inputs, you will need to enter 1 out of the 4 (Industry Sales, Employment, Employment Compensation and Proprietor Income). Since IMPLAN is also a linear Model, if you have a negative value, then you would enter the negative sign first and then your value. If you do not mind sharing some additional information with us about your project; we would be able to make additional recommendations.
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    SM
    Thanks for the response! I have a few more questions that are listed in the attached document. (I wanted to include screenshots but I could not get them to show up correctly in the message text). The first is a basic data interpretation question. The remainder deal with conducting an economic contribution analysis. Please note that I only have access to IMPLAN online for this project and 2014 data. Thanks! [attachment=680]hce359b1.docx[/attachment]
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    IMPLAN Forum
    Hi. Thank you for the attachment. To address the first two questions as it relates to the Study Area Data. The 47 Jobs and $4,369,092 of Output in Clarion County represents the current economy. The analysis impacts are not captured in this screen as you will find this information upon running your analysis in the Results screen. The Study Area Data table just provides you with the makeup of the region(s) you decided to select to design your Model. These are the Totals for the year of the data set. So 2014, that is the total value of production and the total Employment for that Sector. As for the Contribution analysis: You are correct that you will want to use the Multiplier value 1.00066805 to calculate the reciprocal value. As this is tells you how much of Sector 16 purchases from itself and we need to reduce our Output value such that it eliminates the buy back purchases from its own Sector. From your description in your Word document, you made mention Forestry Sectors. If you are looking to evaluate several Sectors, the method for this analysis is a multi-Industry contribution analysis. For this type of analysis, it will require the use of the IMPLAN Pro Software. As the IMPLAN Online software does not have this capability. Running a multitude of single Industry contribution analyses will not properly constrain the total and give an overall inflated view of the contribution. If you are looking at the contribution of forestry products, then this is just one of many interrelated Industries and the Single-Industry Contribution technique won't let them accurately resolve this because when they sum together the final results the forestry products will have far more Sector 16 than allowed. If you could clarify what you mean by Direct Contribution. Contribution is by definition a total value, is that you are calling the initial Industry Sales value? If so, that value won't have a companion value in a multi-Industry contribution analysis. If you switch your view to the Summary Multipliers tab > Sector 16 > Type SAM Multiplier you will find that this Multiplier (1.583660) matches the Multiplier that is in your screenshot (Detail Multipliers tab > drop down Sector 16 and match it with the corresponding Sector 16). We need to isolate just those purchases from itself, whereas the Summary Multiplier represents the entire effect on the economy. You did properly calculate the reciprocal value and to confirm you do multiply that against the Output value found in the Study Area Data. I as well get the same value as you $4,366,175318 which is entered into the Industry Sales field in the Event. The value is supposed to equal what the Study Area Data report. To answer question 6 and I apologize for the article cutting off the remaining portion of the sentence (this has now been fixed) in the Detail Results screen > Sector 16 the Total Value should equal your Total Industry Output found in the Study Area Data. The value that I generate is $4,369,092. I have included my Results Screen (enter screenshot of results screen) as my value are slightly different than yours; this is most likely do to the event year that was used when setting up your Event. Since the data used was 2014 and the Total Industry Output value is in 2014 dollars; the Event Year should be in 2014 as well. To then be able to make sure that your Results match mind, the Dollar Year for View, found in the results screen will need to be set to 2014. As this represents the dollar value of the year specified. To address question 7. The values in the Study Area Data and the totals, based on the second understanding of how you are defining the tables is fine, everything is accounted for with Output, from there all the other factors are solved. Using the Summary Multiplier would underestimate the contribution analysis. Again, we recommend using IMPLAN Pro for your analysis Advantages to PRO: 1. first and foremost s/he's trying to do multi-Industry contribution 2. Batch Modeling
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    SM
    Thank you for the detailed response. This was[i] very[/i] helpful and I now understand why I will likely need to get Pro instead. One thing- I don't see an attachment with your screenshot of your results section that you mentioned. Could you please post it? Thanks so much!
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    IMPLAN Forum
    We apologize. [attachment=681]h298bc49.jpg[/attachment]
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