Calculating direct effects for non-operational mine, unsure about inputs
Hello, my research team is conducting a study for the mining industry in our area. We are using survey data from several mines, one of which is idle. This mine gave us the number of current employees as well as employee compensation but not operation expenditures. We started by attempting an industry change analysis but they have no industry sales or proprietor income at the moment. If we override the software's estimation by entering in $0, the estimated output is equivalent to $0. However, it should be equal to the value-added. It seems when we override the estimation provided by implan, the natural formula no longer applies. We then considered calculating a labor income change by adding the direct effects that were provided but are unsure of what that would look like?
-
Official comment
Hi there!
It sounds like you are using IMPLAN Pro (the desktop software). If this is the case, you can follow these steps:
- Create a New Event
- Choose your Sector
- Tab over to Employment and enter your total employment
- Tab to Employee Compensation and enter that value
- You will get a pop up that you are going to change the Event to custom. Choose Yes.
- Tab over to Proprietor Income and give that a zero
By not entering anything in the Industry Sales box, IMPLAN will calculate this for you. Now you can run your analysis and you will get values for Value Added and Output.
There are many resources available for using IMPLAN Pro on our support site here: https://implanhelp.zendesk.com/hc/en-us/sections/360000097493-Getting-Started-with-IMPLAN-Pro
Please let us know if you have further questions.
Comment actions -
It seems that the industry sales generated by implan would not be accurate given that the mine is not earning any revenue. It is currently idle. We are more concerned with how to calculate output given that as far as we are aware, the only expenses that the company has are the wages and benefits for its employees.
-
Output in IMPLAN is defined as Intermediate Expenditures + Value Added.
Value Added (VA) is defined as Employee Compensation (EC) + Proprietor Income (PI) + Taxes on Production and Imports (TOPI) + Other Property Income (OPI)
In that the mine does have EC, there will be TOPI and OPI. So, your VA number should be EC + TOPI + OPI. If they are not buying any IE, then that would be zero and your VA would equal your Output. While you can't enter a number for IE in IMPLAN, you can override your Direct results to have VA = Output.
https://implanhelp.zendesk.com/hc/en-us/articles/360035998833-The-Output-Equation-
Please sign in to leave a comment.
Comments
3 comments