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  • The institutions (eg, Federal defense) create the region's final demands. Some institutions, however, also have employment, so \"special\" industries are created as bookkeeping sectors to hold the employment and payroll of those institutions that have employment. The output of these special industries is equal to the value added (essentially the payroll) of that industry. If you run money through Federal Defense Institution (11002), that institution will buy its goods and services, as well as, buy its payroll through sectors 505 (the military employment) and 506 (civilian defense employment). If you run money through 506 civilian defense employment, you are specifying only payroll, and; therefore, getting the impacts of that payroll circulating through the local economy. 

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  • First. I like this Forum method a great deal, and thanks for the quick response. But just be clear, I ran 1000 jobs (seperately) in both 505 and 11002 for a very rural county in a midwestern state. I did get direct and induced results for inputs into 505, but no output for inputs into 11002. Does that lead me to assume that the base buys very little from that county and so no indirects are created from these changes in jobs? thanks jim
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  • While 505 is a \"special\" industry, it is like all other industries in that it has an output per worker (for this special industy the \"value\" is equivalent to payroll per worker). When you specify employment, the software can calculate a \"value\" for a direct output impact. Institutions can \"buy\" their employment, but does not have an output per worker for itself, so the \"value\" remain 0 - ie, no direct impact.
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  • I just read your response to another user about sectors 505 and 506. I am doing a study of the impacts of Navy bases in Washington. I have detailed estimates of purchases made by these bases so I don't want the model to automatically estimate purchases when I put in payroll numbers. So should I put all payroll, military and civilian into sector 506 rather than 505?
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  • Put your payroll (including benefits which is a big deal for military and all federal) into \"5001 Employee compensation\".
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