University payroll

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    DougO
    1. In order to separate the effects of the analysis by parts, you would need to run the operations spending and the event for industry 438 separately. The operations would give you indirect (direct plus indirect columns added together) and the induced off of the indirect (induced). "Industry" 438 would give you induced (induced column) off the direct payroll. The direct effect is the entire budget of the college. Industry 438 is value added only for the state and local gov ed institution, so there are no intermediate expenditures; therefore there are no indirect effects. 2. In this case study, the household spending is all induced, the total impact is induced off of the college payroll. The induced from industry 438 will be similar to this one, but the incommuting, taxes and savings will need to be calculated and removed.
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    jenny
    Both of these case studies model the impacts of household spending, which, by definition, are all induced impacts. So in the second case study, while the results are reported as direct, indirect, and induced, they truly are all induced - they are reported as direct, indirect and induced because some IMPLAN users find it useful to see the first-round induced effects (which represent the households’ initial purchases from local industries and are reported as "direct") separate from the subsequent induced effects.
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    sharma
    Doug, - In this case the direct effect of industry "438", the total output is equal to the total payroll, Why is it so? - Can the induce effect of industry "438", be interpreted as the effect that comes from university employees spending their income? if yes, - in the same line how would explain the direct effect which is equivalent to the total payroll?
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    jenny
    Government institution spending patterns are, by definition, a final demand. However, unlike household institutions, government institutions have payroll. In order to handle the payroll we create special sectors (437-440) which contain the payroll, employment and any other value added that the institution has. No other sector besides these government administrative sectors (i.e., the government institution spending patterns) makes purchases from sectors 437-440. These sectors hold all value-added, which includes a capital consumption allowance (i.e., depreciation) - an item that is necessary for a complete set of social accounts but is relatively useless for impact analysis (most program/project budgets do not contain a line item for depreciation). If you did not set Employee Compensation equal to the Industry Sales value, some of that Industry Sales value would get leaked out as depreciation. Thus, when using these sectors for impact analysis, we typically recommend either a) editing the sector so that OPI = 0 or b) editing the Event so that Employee Compensation = Industry Sales. When reporting the results of a government institution spending analysis, it is generally best to avoid breaking down the impacts into direct/indirect/induced, instead framing it along these lines: "This is the budget and the jobs associated with that budget, and here is the additional output and employment that stems from the spending of that budget."
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