INTRODUCTION
Other Property Income (OPI), a component of Value Added, includes consumption of fixed capital (CFC), corporate profits, and business current transfer payments (net). Negative OPI in general means that the Industry spent more than it brought in as revenues (i.e., ran a deficit) that year.
In the Social Accounting Matrix (SAM) OPI is distributed to Households, Enterprise, Government, and other regions (Trade) in the form of dividends, royalties, corporate profits, and interest income. SAM models by default treat OPI as a leakage, meaning that any OPI generated as part of an analysis will not generate additional Induced impacts. This is because the assumptions that income generated from OPI will go to recipients within the region and that those recipients will spend that income in a typical manner may not be valid.
A COMPONENT OF THE INDUSTRY PRODUCTION FUNCTION
The production function of an Industry in IMPLAN determines how an Industry will allocate Output to operate. It consists of Intermediate Inputs and additional factors called Value Added. The combination of an Industry’s spending on Value Added and Intermediate Inputs equals the Industry’s Total Output.
Other Property Income (OPI) is a component of Value Added. OPI can be a positive or negative value. In general, negative OPI means that the Industry spent more than it brought in as revenues (i.e., ran a deficit that year). For the Administrative Government Employment and Payroll Industries, OPI is depreciation.
HOW IS IT CALCULATED?
Other Property Income (OPI) is one piece of Output. For details on how IMPLAN estimates OPI, visit the article Other Property Income Data.
MEASURING OPI
There is no raw data source that reports OPI separately from Proprietor Income (PI), even at the national level. Rather, it is published only within the more-aggregate measure known as Gross Operating Surplus (GOS), which is the sum of OPI and PI. Nonetheless, because OPI is a component of Value Added (VA) and IMPLAN has estimates for the other components of VA, IMPLAN is able to estimate OPI by way of subtraction. Read more about the data sources and estimation process in Other Property Income Data.
OPI IN ECONOMIC IMPACT ANALYSIS
Although OPI provides a source of income for Households, Enterprises, and Governments, OPI is treated as a leakage in SAM models because the income generated as part of OPI is assumed to go to recipients outside of the region. This means that any OPI generated as part of an analysis will not generate any Induced impacts.
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Updated July 29, 2024