Does OPI Affect Induced Effects?

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david.shideler

• August 12, 2010 22:48

Though I cannot find it now, I thought I had read somewhere that other property income does not affect the induced effect of the model. Is that correct? The reason I am asking is because I am trying to model the impact of a non-profit museum that sets aside a portion of its receipts (which I am using as the output shock) for future exhibit development and a disaster relief fund. Since these funds are not expended to create output in an average year, I am thinking about modifying the industry data and allocating the amount of these set asides to OPI in sector 406. Is this a reasonable approach?

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  DougO

  • August 13, 2010 13:47

  Yes, only employee compensatin and proprietor income is used to drive the induced effect. Other property income is essentially a leakage. Any part of a production function going to OPI will cause no further impact.

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