Preparing and Entering: Event Value

INTRODUCTION

Selecting the value of the change you want to model is fairly straightforward. It is simply the total dollars or employment you want to model; which will be entered as the Event Value in IMPLAN. Your analysis may have only one value or may be made up of a combination of many values. The what of your analysis will inform the definition of your Event Value(s).  

INDUSTRY EVENTS

When one or more of the following values are known about the change in an industry’s production or inputs: Output (production value), Employment, Employee Compensation (wages and benefits), or Proprietor Income, these values can all be modeled through the Industry Events. If you want to model an increase of $1 million in Output, the $1 million answers what the value of the change is. 

Many times, you will have more than one value for your Event. Perhaps you were given both $500,000 in Employee Compensation for 6 employees. It is best to use all of the detailed data that you have in the model. By choosing an Industry Event, clicking on the Options button or selecting the Advanced Menu, you can input the additional details, in this case 6 employees.

It is important that your what, or the change occurring, is specifically the change occurring in your Region of study (where).  

For retail and wholesale sectors, The Margins section will become available for selecting Producer Price or Purchaser Price. Its very important to indicate to IMPLAN whether your retail/wholesale Output is the Producer or Purchaser Price of a retailer or wholesaler. Read on about Retail and Wholesale Industry Margins. 

INDUSTRY CONTRIBUTION EVENTS

In the case of Industry Contribution Events, the what should be defined as the amount of Industry Output for which you’d like to estimate the contribution, or the portion of the Industry for which you’d like to estimate the contribution. An amount of Industry Output can be entered when the radio button on the Industry Contribution Event is set to the dollar sign. An Industry portion can be entered when the radio button is set to the percent sign. When the percent option is used, the entered portion will be taken from the existing production levels (Output, Employment, etc.) for the Industry specified within Region and Data Year which can be found in Region Details > Study Area Data > Industry Details.  

COMMODITY EVENTS

Commodity Output Events are more appropriate than Industry Events when the producing Industry, place of production, and time of production are unknown. Commodity Events are also recommended when Margins are applicable and the item purchased is known.  

There is only one Event Value that can be provided in a Commodity Event: Commodity Output. In the case of Commodity Events, the what should be defined as the change in demand for the given Commodity. IMPLAN applies the Commodity’s Market Shares to this Commodity Output number.

There is the additional option of defining the Local Purchase Percentage (LPP) of the Commodity in a Commodity Output Event by clicking on the Options button and selecting the Advanced Menu. You have three options for setting your LPP:

• Leave LPP at 100% if you know the change in demand for the Commodity is met totally by local production of the Commodity
• Set LPP to SAM by checking the SAM checkbox if you don’t know where the Commodity demand will be met. For example, you may be using a Commodity Output Event to estimate the impact of new demand for electricity by businesses and households in a developing Region.  If the place of production of electricity is unknown, you can set LPP to SAM. This will use the average Regional Purchase Coefficient for electricity in the Region, which indicates the portion of demand for electricity that is met within the Region (in the Data Year being used).
• Set LPP to your known LPP if you know what portion of the Commodity Output will be coming from the within Region. 

Margins are applicable to Commodities that are goods that can be purchased via a retailer or wholesaler. Similar considerations apply when choosing between Purchaser and Producer Price for a Commodity Event as when making this selection for a retail/wholesale Industry Event, but the implication of the choice is quite different. Read on about Retail and Wholesale Commodity Margins. 

LABOR INCOME EVENTS

When Labor Income Events are used, there are only two specification options (as listed on the table at the beginning of this article) which are Employee Compensation or Proprietor Income. When using a Labor Income Event the Event Value (what) should be defined as the total value of the type of new income specified that you’d like to analyze.

HOUSEHOLD INCOME EVENTS

When Household Income Events are used, there are nine household income groups to choose from when defining your specification. The Event Value or what in this case should be the total new household income within the household income group specified that you’d like to analyze.

INDUSTRY SPENDING PATTERN EVENTS

When Industry Spending Patterns are used the Event Value or what could either be Total Output or Intermediate Inputs. By default the Event Value will be assumed to be Intermediate Inputs. To select Total Output, open the Advanced Menu by clicking into it via the Options button. 

Regardless of which is selected, IMPLAN will only estimate the effect of Intermediate Inputs spent on the Commodities included in the Spending Pattern. If Total Output is selected, IMPLAN will first calculate Intermediate Inputs by multiplying the Event Value by the Total Gross Absorption of the Sector for the Region, which can be found in Region Details > Social Accounts > Balance Sheets > Industry Balance Sheet > Commodity Demand, then filter by the Sector of interest and see the Gross Absorption column total.

INSTITUTIONAL SPENDING PATTERNS

When Institutional Spending Patterns are used, the Event Value should be defined as Total Spending on Goods, Services, AND Labor. Institutional Spending Patterns differ from Industry Spending Pattern in that they do include labor. 

DELETING MULTIPLE EVENTS

IMPLAN now has the ability to delete multiple events at the same time.

From the Impacts page, click the checkboxes for the events you would like to delete (or select all events using the top checkbox).Then click the advanced button on the top right which will open a dropdown containing "Delete Selected Events." This will only delete the events you selected in the previous step.

A new popup will appear to verify that you are looking to delete these selected events and notating they cannot be restored. If you are satisfied with your selection, click the "Delete" button and all your selected events will be removed from the Impacts!

RELATED TOPICS

Framing Your Analysis

Explaining Event Types

Written December 10, 2019

Updated September 21, 2023