Modeling capital expenditures with limited info.

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    Candi Clouse

    Hello!

    1. For the mines that you know specific purchases, I recommend using a Bill of Goods approach and modeling each of the purchases as Commodity Output Events. This article should help walk you through it.
    https://implanhelp.zendesk.com/hc/en-us/articles/360026040433-ABP-Analysis-by-Parts-Bill-of-Goods-Using-Commodity-or-Industry-Events-with-Labor-Income-Events

    2. For this, you will have to make an assumption. Often large capital purchase items are not produced in your study region, and are therefore leakage.This may even include the wholesale portion. You could make the assumption that they used a local wholesaler, which could be modeled through one of the wholesale IMPLAN Industries (392-401).

    Please let me know if you have more questions!

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    Bran0916

    Thanks for getting back to me Candi,

    I have located the margins and have applied them. I am curious as to why there are no margin values for sectors 3262 and 3215.

    Also, I am trying to model the capital purchases in the manner that you described. For the purchases where we had specific information I applied the spending reported by the companies to the corresponding sectors. I then applied margins from IMPLAN’s “common margins” file to distribute the industry spending accordingly. I modeled the margined sectors as an industry spending pattern using the spending amount as the level. However, I am unsure of which sector to apply the direct effects. Alternately, would it be acceptable to model the margined dollar amounts as industry change activities?

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    Candi Clouse

    Hello!

    For your first question, there are no margins for those two Commodities because IMPLAN assumes they are not available via wholesale or retail.

    On your second question, I would recommend that you model them as Industry Changes. That way, you would get the Direct Effects.

    Candi

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