Institutional Spending Pattern Events

INTRODUCTION

The Institutional Spending Pattern Event Type represents a general spending distribution for measuring broad Institutional activity. The Institutional Spending Pattern Event can be used to model a general change in an Institution's spending such as the local governments spending on education. The value entered in an Institutional Spending Pattern should be the total value of spending on goods and services as well as spending on labor. 

Event Type Institutional Spending Patterns 
Event Use Analyzing general fiscal spending changes
Event Specification

Federal Government NonDefense

Federal Government Defense

Federal Government Investment

State/Local Govt. Other Services

State/Local Govt. Education

State/Local Govt. Hospital & Health

State/Local Govt. Investment

Capital*

Inventory Additions/Deletions*

Event Value Total Spending on Goods, Services and Labor

*Note that the Specifications for Capital and Inventory Additions/Deletions relate to all Industries, not only government and should rarely be used.

EVENT TYPE DETAILS

Institutional Spending Patterns, like all Spending Patterns, are made up of a list of Commodities, although Institutional Spending Patterns include government payroll Commodities to capture spending on Labor. Because Institutions are Final Demanders, each Commodity in the Institutional Spending Pattern is treated like a Commodity Output Event and will create a Direct Effect.

Institutional Spending Pattern Events are unique in that they describe both Intermediate Inputs and Value Added within the same Spending Pattern. This results in these Spending Patterns producing 'mixed results’ where the reported Direct Effects describe both what we would generally consider Direct Effects (income, Employment, and Value Added) and the first-round Indirect Effects that arise from the government spending its budget. 

The Institutional Spending Pattern will include a list of Commodities purchased, the coefficients which represent the amount spent on each Commodity per dollar, and the Local Purchase Percentage  of each Commodity which represent the amount purchased locally

By default, the Event Value for an Institution Spending Pattern is total spending and the Local Purchase Percentage is set to “SAM” or the Regional Purchase Coefficient of each Commodity. The user can change the defaults within a Spending Pattern Event using the Advanced Fields icon. The Event Value is then applied to the coefficients of each Commodity in the Spending Pattern.

While the Spending Patterns represent the average buying pattern and ratios of all institutions, it may not match the expenditure pattern of the institution being analyzed. To learn more about making adjustments to a spending pattern, read Editing a Spending Pattern.

INSTITUTIONAL SPENDING PATTERN EVENT

In this example, we want to look at a potential $10M increase in military spending by the federal government. 

To set up this activity using an Institutional Spending Pattern Event, first create a unique Title for the Event, then select Institutional Spending Pattern for the Event Type. Next, click on Specification. Use the dropdown menu to select 11002 - Federal Government Defense, the IMPLAN Institution that best matches the activity. The default Value for this Event Type is total spending, so enter $10,000,000. 

Click Advanced Fields to open up the spending pattern modal. From here users can select the appropriate Data Year from the dropdown menu and make edits to the spending pattern.

Note that if the edits you have made result in the Sum of Percentages to be greater than 100%, IMPLAN will prompt the following warning message. Click Normalize if this was not intentional, or click Continue if this was intended.

ANALYZING AN INSTITUTIONAL SPENDING PATTERN EVENT

Now it is time to assign Events to Groups. To assign an Event, click the Drag Event icon, hold it, and drop it into the corresponding Group. The Multi-Select feature allows users to select more than one Event at a time.

Each Group will indicate the number of assigned Events in the upper right corner by showing a number indicating the number of Events in that Group. To double check if an Event was correctly added to a Group, use the drop down arrow to view the assigned Events.

Now click Run in the bottom right of the Impacts Screen.

When the analysis is finished, click View Results. For more information on how to interpret them, check out the article Examining Results & Interpreting Direct, Indirect, and Induced Effects.

NOTE ON MIXED RESULTS

The Institutional Spending Pattern Event Type represents a general spending distribution for measuring broad Institutional activity in the Region. This results in these Spending Patterns producing 'mixed results' where the reported Direct Effects describe both what we would generally consider Direct Effects (income, Employment and Value Added) and the first-round Indirect Effects that arise from the government spending its budget. 

There are two options available for users to reclassify the results from an Institutional Spending Pattern Event. Learn more in the article Categorizing Effects for Institutional Spending Pattern Events.

RELATED ARTICLES

Categorizing Effects for Institutional Spending Pattern Events

Explaining Event Types

 

Updated January 19, 2024