relationship between output, value added, income
Hello,
I have a relatively basic question about the relationship between output, value added, labor income. and taxes. I have a client who wants to see the output impacts segmented by three other impact categories (i.e., value added, labor income, and taxes). I know that labor income is subset of value added and value added is subset of output. Is there a certain/standard formulae to represent this relationship?
Output = ............
Can you verify the following formulas?
Output = value added + value of intermediary goods and services.
Value added = labor income + taxes + proprietary income
Thanks!
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Hi Zafer, Here are the equations you are looking for: Output= Intermediate Purchases (Business to Business) + Value Added Value Added = Labor Income + Indirect Business Taxes + Other Property Type Income Labor Income = Employee Compensation + Proprietor Income Thanks for reaching out and please let me know if you have any additional questions! -IMPLAN Staff
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