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Unlock the Black Box: Discover Region Details

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Angela Slovachek
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INTRODUCTION

This article outlines the data found in Region Details as well as some common uses for Digging into the Data. The data within the Region Details is the basis for all IMPLAN analyses, no black boxes here. 

 

REGION OVERVIEW

This is the first page you will see upon accessing Region Details. Here you will find an overview of the Selected Region including how many of the IMPLAN Industries exist in the region, total values for components of the Leontief Production Function (LPF), population, and the number of households.

  • Region Highlights
  • Study Area Regions included in the Selected Region
  • Components of Value Added
  • Components of Final Demand
  • By Industry:
    • Total Employment (Wage and Salary Employment + Proprietors)
    • Output
    • Labor Income (Employee Compensation + Proprietor Income)
    • Average Employee Compensation per Wage & Salary Employee 
    • Average Proprietor Income per Proprietor 

Some Questions that can be Answered in this Section:

How can I find out if an Industry currently exists in my Region?

The Industries table on the Overview page provides a list of all Industries. If there is a non-zero value in Output, then the Industry exists in your Region. IMPLAN Industries consist of 546 different codes and names. Industries 1-534 are all private industries and government enterprises that have been aggregated by similarity in input purchasing patterns. IMPLAN Industries 539-546 represent the payroll/value added of government employment. Certain IMPLAN Industries require additional explanation, either because they are not NAICS based or they have special properties.

 

How can I customize an existing Industry’s LPF or add an Industry that does not exist in my Region?

The option to customize a Region is available from the menu within the Region Details. Clicking Customize Region will take you to the Customize section. Select an Industry from the list on the left-hand side or by searching for the Industry in the search field. For each Industry that exists in the Region, there will be information about the total number of Employment, Output, Employee Compensation (EC), Proprietor Income (PI), Other Property Income (OPI), and Taxes on Production and Imports Net of Subsidies (TOPI), and their Per Worker ratios. These values are all editable. To add an Industry that does not exist within the Region, find a proxy region to borrow information about the Industry’s LPF. Be sure to make Employment value changes first, working from top to bottom. Negative values can only be entered for PI, OPI, and TOPI. Alternatively, the new Industry Impact Analysis (IIA) Event Type allows users to customize an individual Industry’s LPF without changing the underlying Study Area data. 

 

STUDY AREA DATA

This section provides more detail for each industry, such as the breakout of Wage & Salary Employment and Proprietor Employment, all the components of the Leontief Production Function, and additional industry-based ratios. This section also contains information about each industry’s and institution’s demand for each commodity and some area demographics. The following list describes all the sub-sections in the Study Area Data section and their component data items. 

  • Industry Detail 
    • Output
    • Wage & Salary Employment
    • Proprietor Employment
    • Components of Value Added
  • Industry Summary
    • Total Employment
    • Leontief Production Function Summary
    • Total Output
    • Total Intermediate Inputs
    • Total Value Added
    • Labor Income
  • Institution Commodity Demand (high level summary, local and nonlocal demand)
  • Household Commodity Demand (local and nonlocal demand)
  • Government Commodity Demand (local and nonlocal demand)
  • Area Demographics
    • Land Area
    • Population
    • Number of Households by Income group
  • Industry Averages
    • Average Output 
    • Averages for the components of VA

Some Questions that can be Answered in this Section:

How are Labor Income Events distributed throughout my Region?

A Labor Income Event distributes the Value across each household income groups’ spending patterns based on their regional distribution, after removing commuters and payroll taxes. You can find your Region’s distribution by dividing each Income Group’s number of Households by the Total in that Region. These values are found in the Household table under Area Demographics. 

 

How can I figure out how households in my region spend money?

From Study Area Data > Institution Commodity Demand you’ll find how all households spend money on local and non-local Commodities as a Household Sum column. In the Household Commodity Demand table you’ll find how each household income group spends.

 

How can I find wage & salary employment vs. proprietor employment by industry?

This is available in the Industry Detail table.

 

SOCIAL ACCOUNTS

Reports

This section digs deeper into the supply and demand of Commodities in the Region. Here we find data on the regional availability and regional use of Commodities. 

  • Commodity Summary 
    • Commodity Summary (Commodity Supply/Demand data)
      • Industry Commodity Production
      • Institutional Commodity Production
      • Total Commodity Supply (Industry Production + Institutional Production)
      • Local Use of Local Supply (Total Commodity Supply less Foreign and Domestic Exports)
      • Intermediate Commodity Demand (total demand for this Commodity by local Industries)
      • Institutional Commodity Demand (total demand for this Commodity by local Institutions)
      • Total Gross Commodity Demand (Intermediate Demand + Institutional Demand)
      • Domestic Supply/Demand Ratio (the percentage of total local demand for the Commodity that could possibly be met by local production)
    • Commodity Averages Summary
  • Commodity Trade
    • Exports by Commodity (Domestic and Foreign)
    • Imports by Commodity (Intermediate and Institutional)
  • Institution Local Commodity Demand (demand by local institutions that is met by local supply)
  • Household Local Commodity Demand (demand by each local household income category, that is met by local supply)
  • Government Local Commodity Demand (demand by each local government institution that is met by local supply)

Some Questions that can be Answered in this Section:

How much of resident consumer spending goes toward restaurants in my region?

You can find this by calculating it in the Social Accounting Matrix (SAM) or through the Household Local Commodity Demand. Looking at the IxC SAM, you can find out what portion of household income (by income group) is spent on local commodities by dividing the value in the household income column and commodity row by the household income column total.  In Social Accounts > Reports > Household Local Commodity Demand, you will find how the local household spending is spent by Commodity.

 

I am still concerned about the dollars spent outside of the region as I do not want to artificially inflate economic impacts. Does IMPLAN adjust for it automatically or do I need to provide certain adjustments?

IMPLAN automatically estimates local vs. non-local spending in the calculation of indirect and induced effects based on commodity-specific RPCs. 

 

How do I determine the Local use of Local Supply for a given Commodity?

There are two ways to calculate the Local use of Local Supply for a Commodity in your Region, using Total Commodity Supply or Total Commodity Demand. The data required for each calculation will be found in the Commodity Summary and Commodity Trade tables. If using the Total Commodity Supply, subtract out the Foreign and Domestic Exports for that Commodity. If you are using the Total Commodity Demand, subtract out the Total Imports for that Commodity. 

 

Balance Sheets

The Balance Sheets provide more detail on the purchase and supply of commodities and allow users to explore production/sales and demand in the Region by Commodity or Industry. In the Industry Balance Sheet, the Value Added and Commodity Demand sections combine to make up the full LPF for each Industry. In the Commodity Balance Sheets, we’ll find the Industries and Institutions that demand that Commodity in addition to the Industries and Institutions that produce and/or sell that Commodity. 

  • Industry Balance Sheet (filter by Industry)
  • Commodity Balance Sheet  (filter by Commodity)
    • Industry-Institutional Production
      • Institution Production
      • Regional Market Share
      • Byproduct Coefficient 
    • Industry Demand
      • Regional Purchasing Coefficient (RPC)
      • Gross Absorption
      • Gross Inputs
      • Regional Absorption
      • Regional Inputs
    • Institutional Demand
      • Regional Purchasing Coefficient (RPC)
      • Gross Demand
      • Regional Demand

Some Questions that can be Answered in this Section:

I am running a supply chain analysis for a few Industries in my Region. How do I find which industries are buying a certain commodity?

Head into Social Accounts > Balance Sheets > Commodity Balance Sheet > Industry Demand and select a Commodity. Here you’ll see the Gross Absorption by Industry, which translates to the amount being spent on that specific commodity for every $1 of Output. The Gross Inputs tells you how much each Industry needs for production, as an Intermediate Input. Regional Inputs tells you how much each Industry is able to purchase from the Local Supply. If the RPC is low for that Commodity, then those Industries will need to import them into the Region.

 

When I run an Industry Output Event, how does IMPLAN determine how much money is spent on Direct Labor Income for that Industry?

There are two tables in the Industry Balance Sheets that combine to give you an Industry’s Leontief Production Function (LPF), the Commodity Demand and Value Added. The Total Gross Absorption is the percent each Industry’s Output (sales or revenues) is spent on Intermediate Inputs. This percentage combined with the Value Added percentage always sums to 100%. The Value Added table also breaks down to its individual components. Therefore, you can determine how much each Industry spends on Labor, pays in taxes on production, and earns in profits (OPI). 

 

IxC Social Accounting Matrix

This section details the Industry by Commodity (IxC) Social Accounting Matrix (SAM). These tables are where you can find non-Industry transactions and the summation for all Industries in the Region. Dig deeper into the SAM by watching the Link & Learn Fun with Uncle SAM. The IxC SAM reflects purchases on a Commodity basis (Commodity row), whereas the IxI reflects purchases on an Industry basis (Industry row).  

  • Aggregate IxC SAM
  • Detail IxC SAM
  • Export Detail IxC SAM

Some Questions that can be Answered in this Section:

If I knew the employee in-commuting rate for my Industry was 25 percent, how would I go about modifying this in IMPLAN?

The first step would be to determine the current in-commuting rate for your Region. To do this you would need to sum the payments from the Employment Compensation column to the Domestic & Foreign Trade rows in the Aggregate IxC SAM. Then divide the sum by the Employment Compensation column Total. This is the Region’s in-commuting rate for all Industries. If you know that the commuting rate is higher for your Industry, then you can adjust the Employment Compensation value in your Industry Output Event to match. The article Estimating Employee Compensation Adjustments for Known Commuting Rates will walk you through the steps and provide an Excel template for the calculations under the Resources section.

 

What would be the difference between estimating a “Labor Income Change “ using “Proprietor Income” versus “Employee Compensation”?

A key difference is the Proprietor Income is assumed to be earned locally, so there will be no leakages of the Proprietor Income due to commuting. Further, Proprietor Income will have different income tax rates and will be distributed slightly differently to the nine income groups, which can be examined by comparing the Employee Compensation and Proprietor Income columns in the IxC Aggregate SAM.

 

Are there Effective Tax Rates on personal income?

Yes, taxes paid on personal income, or household income, can be found in the household income columns within the Detail IxC SAM as payments to the government rows. The effective tax rate can be calculated as these government payments within a given column divided by the given Household Income column total. There will be a different effective tax rate for each Household Income group.

 

INDUSTRY ACCOUNTS

Reports

These tables explore demand for Industries by Institutions in the Region. Think of each of these tables as the respective Local Commodity Demand table under Social Accounts converted from an Institution by Commodity table to an Institution by Industry/Institution table.

  • Institution Industry Demand
  • Household Industry Demand
  • Government Industry  Demand
  • Industry Output/Outlay Summary
    • Total Outlay = Intermediate Outlay + Institutional Outlay + Intermediate Imports + Value Added
    • Total Output = Intermediate Output + Final Demand

Some Questions that can be Answered in this Section:

How can I find out how much of an Industry’s spending affects local industries? 

Intermediate Outlay in the Industry Output/Outlay Summary table shows how much each Industry spends on Intermediate Inputs from local Industries. Taken as a percentage of Output, this gives the percentage of Output that will go to support the first round of Indirect Effects in the region.

 

IxI Social Accounting Matrix

This section details the Industry by Industry (IxI) Social Accounting Matrix (SAM). The IxI matrix reflects transactions in terms of Industries as rows and columns. Therefore, instead of a Commodity row, these local Commodity purchases are allocated to the producers as Industry and Institution rows. Because of this, institutions will include payments found in the IxC SAM, plus the payments to these institutions due to institutional production of Commodities. Dig deeper into the SAM by watching the Link & Learn Fun with Uncle SAM.

  • Aggregate IxI SAM
  • Detail IxI SAM
  • Export Detail IxI SAM

Some Questions that can be Answered in this Section:

I know that some of the Industries in my Region purchase scrap or recycled material instead of new products. How does that get accounted for in the IMPLAN model? 

IMPLAN accounts for Scrap as a Commodity only, in other words there is no production value associated with the purchase. Scrap consists of Commodities that are cast off as part of a production process and then resold. Examples include sales of used aluminum cans to recyclers and sales of scrapped vehicles to metal recyclers. If you want to view how much an Industry in your Region is purchasing of Scrap and Used and secondhand goods, you can Export the Detail IxI SAM. In the SAM, you will see select Industries making payments to the 14001 Capital row. That is the dollar value associated with the scrap purchase.

 

MULTIPLIERS

All of the underlying Region Details from the first four tabs are incorporated into the calculation of the Multipliers. Multipliers and Per Million Dollar Effects are available for Output, Employment, Labor Income, and the four components of Value Added (Employee Compensation, Proprietor Income, Other Property Income, and Taxes on Production and Imports). Detailed Multipliers breakout an Industry’s Summary Multiplier by Industry. Therefore, instead of the total effect per direct effect, it shows the effect to each industry per direct effect. 

  • Summary Multipliers (relative cumulative effect per additional unit of the given economic indicator)
  • Detailed Multipliers (by Industry effect per additional unit of the given economic indicator) (filter by Industry)
  • Per Million Dollar Effects (relative cumulative effect per $1M of additional Output)

 

Some Questions that can be Answered in this Section:

Is there a way to estimate impacts without running an Industry Output Event through a model?

Yes, in the Multiplier section there is a Per Million Dollar Effects table. This table shows the dollars or jobs associated with running an Industry Event of $1M in new Output for an existing Industry. Thus, for Direct Output Effects, if an Industry exists in the Region, the Effect will be $1M. You will then see the Indirect Effect, the Induced Effect, the Type 1 Effect, and the Type SAM Effects. As IMPLAN is a linear model, if your Event was $10M you can multiply the Per Million Dollar effects by 10 to get your estimated results. However, this does not take into account additional details specific to your project, such as employment values and customized spending patterns that may differ from the industry and region-wide estimates in IMPLAN.  Also note that this approach will not yield detailed results on the specific impacts to other industries in the region nor will it yield specific tax impact results. 

 

OCCUPATION DATA

The Occupation Data header contains information about all of the Standard Occupational Classification (SOC) data in your Region. This dataset shows estimates of occupation employment, wages, hours, and core competencies which include knowledge, skills, abilities, education, work experience, and on-the-job training levels.

  • Region Occupation Summary
  • Region Occupation Averages
  • Industry Occupation Detail
  • Industry Occupation Averages
  • Core Competencies
    • Region Summary
    • Industry Summary
    • Occupation Summary

 

Some Questions that can be Answered in this Section:

Where can I find the educational level for workers in my Region? Is this available by Occupation?

To explore the required education level for all workers, select Region Summary under Core Competency. The Education Required table will show you the typical education requirements for all jobs in your Region. To explore the education level by Occupation, select the Occupation Detail under Core Competency. Use the filters at the top of the screen to search by Occupation level and Occupation to see the education level typically required for those specific jobs in the Region. 

 

ENVIRONMENTAL

The Environmental Data in Region Details contains information about the Selected Region and Data Year. You can examine the data by Industry or by Environmental Satellite (Criteria Pollutants, Greenhouse Gases, Land Use, Mineral Use, Nitrogen and Phosphorus Release to Water, Pesticide Emissions, Toxic Chemical Releases, and Water Use). Each Satellite Account contains information on the Region Use Summary, Industry Use Summary, and Satellite Account Use Details.

  • Region Environmental Summary
  • Criteria Pollutants
  • Greenhouse Gases
  • Land Use
  • Mineral Use
  • Nitrogen and Phosphorus Release to Water
  • Pesticide Emissions
  • Toxic Chemical Releases
  • Water Use

 

Some Questions that can be Answered in this Section:

How can I find out how much water an Industry uses in my Region? I am specifically interested in Industry 14 - Animal Production, except cattle and poultry and eggs?

To explore a specific Industry’s environmental impact you should use the Industry Summary or Details Tables in the Satellite Accounts. If you are interested in Water Usage totals you can find the total Unit Value (in cubic meters) for Industry 14 in the Water Use Industry Summary. The Water Use Details table will further break down the total Unit Value by source (groundwater, irrigation, surface water) and use (alpacas, hogs, goats).

 

VIDEO

Fun with Uncle SAM

 

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Written January 5, 2022

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