INTRODUCTION
IMPLAN's annual datasets consist of a complete set of balanced Social Accounting Matrices (SAMs) for every Region. These SAMs provide a complete picture of the economy and can be used to generate multipliers for estimating economic impacts.
Social Accounting Matrices (SAMs) are static matrices that trace all market and non-market driven monetary flows throughout a Region for a given period of time. SAMs expand upon the traditional Input-Output (I-O) tables to also include transactions between Industries and Institutions and between Institutions themselves, thereby capturing all monetary transactions in a given year.
This article provides a brief overview of the primary components of the U.S.-based IMPLAN SAM. All components or “players” in an economy receive income and make expenditures. In a typical SAM, the columns represent payments or expenditures, while the rows represent a receipt of income. Read Elements of the IMPLAN SAM Tables for more information about the structure of the IMPLAN SAM and Constructing the IMPLAN SAM for more information about the data and data development processes employed to construct the IMPLAN SAM for various geographies.
INDUSTRIES AND COMMODITIES
Industries are major actors in regional economies, meaning that they are a key component of a regional SAM. Regional Industries drive economic activity by producing goods/services for other Industries or final demanders to purchase. In IMPLAN, an Industry is defined as a group of establishments with similar input patterns that engage in similar economic activities. Businesses that fall into Industries purchase inputs, hire labor, pay taxes, and generate profit, in a similar way in order to produce goods and/or services. The goods or services produced by an Industry are known as Commodities. Generally, the primary product or service that is produced by an Industry, or the primary Commodity, are numbered based on the Industry that produces them (e.g., Commodity 3001 is the primary Commodity for IMPLAN Industry 1, Commodity 3002 is the primary Commodity for IMPLAN Industry 2, etc.).
However, this is not always the case, as Commodities can be produced by more than one Industry and can also be produced by Institutions. For example, all of the electricity producing Industries produce the same single Commodity “electricity” even though they do so via different methods (fossil fuels, wind, etc.). Additionally, Industries can produce more than one Commodity. The portion of an Industry's Output coming from production of each Commodity it produces is called a Byproduct Coefficient. Read more on the relationship between Industries and Commodities in our support article Industry and Commodity Basics.
INSTITUTIONS
In IMPLAN, Institutions are entities that create final demand in an economy. In the IMPLAN SAMs these would include: Households, Government, Capital, Inventory, and Private Enterprise. Most Institutional demand for goods and services is final, meaning that it represents demand by households and governments for final consumption (as opposed to use as an input into the production of another product, i.e. intermediate demand), investment purchases, and/or net additions to inventory.
HOUSEHOLDS
Like other Institutions in IMPLAN, households receive income and make expenditures. IMPLAN’s U.S.-based SAMs, have nine different household groups that are categorized by the level of Household Income they receive, ranging from less than $15K to greater than $200K. Household Income represents the income earned from all sources, including labor income net of payroll taxes, interest, dividends, and transfer payments from the government (such as social security, veterans’ benefits, SNAP payments, etc.).
With their Household Income, households will pay personal taxes, save, and spend what remains consuming goods and services. Read more about households in IMPLAN in our support article Household Basics.
GOVERNMENT
IMPLAN data include several types of government activity. Government enterprises are reflected as Industries in the SAM in that they operate much like other private sectors (e.g., postal services). However, “Administrative” or “general” government is considered an Institution in IMPLAN’s U.S.- based SAMs. These are governmental bodies that are engaged in non-market driven activities. IMPLAN has both Federal and State/Local Government Institutions, such as Federal Government Defense, or State/Local Government Education.
Government Institutions receive income from taxes, inter-institutional transfers, and the sale of Commodities. Government Institution’s expenditures include inter-Institutional transfers, consumption of Commodities, and hiring employees. Read more about how government activity is captured in IMPLAN in our support article Government Basics: Understanding Sales, Revenues, and Expenditures.
ADDITIONAL FINAL DEMAND
Additional Institutions and final demand categories in the IMPLAN SAM are Capital, Inventory, and Private Enterprise. Capital represents the expenditures made by Industries and Institutions for construction and to obtain capital investment equipment. Inventory reflects the stocks of goods held by an Industry or Institution over a period of time. Lastly, the Private Enterprise Institution represents incorporated businesses (not proprietorships). Read more in our support article Additional Final Demand Basics: Capital, Inventory, and Private Enterprise.
TRADE
Within the SAM framework, the Trade account represents the monetary flows into and out of a Region, with payments to the Trade rows representing imports and payments from the Trade columns representing exports. In the SAM framework, Trade consists not only of the trade of Commodities (goods and services) but also transfers of money in the forms of after-tax Employee Compensation (commuting), Business Transfers, Taxes, Social Benefits, and Capital Transfers.
In IMPLAN, there are Foreign and Domestic Trade, both of which are a major source of Leakages for the Region being studied. Foreign Trade represents the flow of money (for goods, services, and employment) to and from the United States internationally. Domestic trade represents the flow of money (for goods, services, and employment) to and from the Region of analysis, but within the United States. Read more in our support article Trade Flows in IMPLAN.
NOTE ON IMPLAN’S GLOBAL DATA PRODUCTS
Note that the IMPLAN SAM characteristics outlined in this article are in relation to IMPLAN’s U.S.-based data, details of which may vary when utilizing IMPLAN’s Global Data Products. For more information, refer to the Global Products: Release Notes & Estimation Methods section of our support site.
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Written November 8, 2024