Analysis By Parts (ABP) and estimates of direct value added

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William Smith

• July 03, 2019 19:33

I have a project that uses analysis by parts. I have the direct expenditure amount on labor income, employment and output. I also have a reasonably close industry to base the direct effects upon. What are the steps to create an estimate of the direct value added? 

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  maria_lucas

  • July 08, 2019 17:14

  Hello, 

  Great question. Direct Value Added is calculated most easily as Direct Output minus Direct Expenditure amount (or Intermediate Expenditures), as the Output equation is Output = Intermediate Expenditures + Value Added.

  Value Added breaks out further as, Value Added = Labor Income + Tax on Production and Imports, less subsidies + Other Property Income 

  Thank you,

  Maria

  https://implanhelp.zendesk.com/hc/en-us/articles/115009498847-Value-added

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