I'll set up what I have first so you can see my concern.
General Structure of Impacts
- I have built a model that looks at a set of government activities. The governments involved would be Federal, State and Local.
- I also have a model that looks at the impact of a large industry on the state's economy. I guess you would call it a contribution type impact. (I'm using an industry change activity.)
Double Counting Concern
My concern is that the impact from the industry takes into account the tax dollars coming from that industry and a share of those dollars must be double counted because they are going into the impacts observed in the gov analysis.
Having thought about this some more I realize that even if I am able to identify and address the indirect activity created there is still an effect that is created by personal income taxes that go into government budgets and a share would then be used for the activities identified in the government impacts.
This is beginning to feel intractable but that's why I'm asking the experts!
The fact that they are in two separate models maybe is not an issue. To keep things cleaner in the models I have structured them that way but they could just be different activities in the same model. One reason though to work with two models may be to change the build of the multipliers included so that one includes the type government sectors and one does not.
Multiplier Specification Question
However, not including the government sectors still results in indirect effects showing up from government activity. I would have expected this as I have not zeroed out governments the production function in the industry model so that it wouldn't included them.
But this leads to a further question, if I build a model that does not include the gov sector multipliers then what exactly am I doing? Does this change the induced effects that are occurring from gov employee wages?
There are a couple of other things that confuse me.
- In the File / User Preferences the "Social Accounts" tab identifies trade flow options and then the "Multipliers" tab identifies what I would more likely have thought of as Social Accounts.
- In the IMPLAN Model Economic Overview the multiplier specification has a drop down box that identifies all the possible multipliers. I've never tested this but what is the value of selecting one of them and why do all of them show up if they are not all included in the model build?
Thanks in advance for your time, guidance and help.
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