Changing flows among SAM institutions

It is pretty difficult to modify the underlying SAM data. The easiest way to look at this impact is to estimate the size of the tax cut and then tax that money and do a household impact. If you assume that all the tax cut will be spent, you can import a household expenditure pattern (usually we just advise to take a middle income bracket) and then set the activity level to your tax cut.

"It is pretty difficult to modify the underlying SAM data. The easiest way to look at this impact is to estimate the size of the tax cut and then tax that money and do a household impact. If you assume that all the tax cut will be spent, you can import a household expenditure pattern (usually we just advise to take a middle income bracket) and then set the activity level to your tax cut." Thank you. On a related issue: how shall I interpret the institutional activity level? If my institution is HH LT 10k and I raise that level from 1.0 to 1.5, does that mean HH LT 10k will now spend 50% more than it did before? Regarding taxes, assuming the above statement is correct, here's what I plan to do. This might be similar to what you're suggesting. I take the estimated dollar volume of the tax cut. I find this tax cut comprises X% of total HH income in the region. Then I increase the activity level to 1 + X/100 for every HH group. Here's where I run into problems. As far as I know, I haven't introduced any alterations to the model yet, all I've done is tell IMPLAN that any changes I do introduce should be multiplied by (1 + X/100). In the Events part of the screen, how do I introduce a change? For example, how do I tell the model that I want to increase HH spending for every HH group by $1M and have that $1M increase spread out evenly across every industry? Obviously I don't want to modify about 200 industries by hand.

The institutional activity level of the imported spending pattern sums to $1. If you set the activity level to 1.5 you will spend $1.50. You would have to look at the sum of the HH LT 10k column in the Study Area Household Commodity demand report and increase the value there to 150%. Correct when you introduce a spending change you get an impact resulting from that spending. If you edit the model, you change multipliers but you aren't getting an impact. The tax cut will only affect the portion of the household income that the tax applies to. You can print up the IxC SAM with row detail to see our estimates of the household payments to governments due to specific taxes.

This clarifies nicely. Thank you. :)

A counter-balancing impact to increased household spending due to a tax cut is the potential loss of government activity which can be modeled through State and local government non-education spending pattern.