Contribution Analysis of Interactive Media Cluster

Comments

12 comments

  • Avatar
    ScottL
    That should work. The best approach is to do an Analysis by Parts where you build up a set of expenditures for your new industry. You can do that in a spreadsheet and import it into IMPLAN. Look for the Activity Template in the Implan User Data\Templates folder on your appliance. You would then also model the labor income as a separate impact. If you do a search on the forum you should find more information about this approach.
    0
    Comment actions Permalink
  • Avatar
    crampton
    I don't have information on the production function of the Interactive Media cluster. I was hoping to proxy that by aggregating the NAIC-based industries that have the highest representation in this group of business. Can I do an analysis by parts without detailed expenditure data, or should I be exporting the input data for the industries in the cluster and putting it together outside the model.
    0
    Comment actions Permalink
  • Avatar
    ScottL
    OK, aggregating would be the next best thing to do. You can aggregate the sectors using the Options/Aggregation. Here is a KB article to do it. http://implan.com/V4/index.php?option=com_content&view=article&id=556%3A556&catid=231%3AKB14&Itemid=54 You don't need to do ABP then, but you will need either total media cluster sales or employment.
    0
    Comment actions Permalink
  • Avatar
    crampton
    Just to clarify--I shoud first modify the commodity and trade flows for each of the industries (as described in instructions for the multi-industry contribution analysis) that I plan to add to the custom sector, right? Or is that step still necessary?
    0
    Comment actions Permalink
  • Avatar
    ScottL
    Aggregate first if you are going to be modifying anything. What are you wanting to adjust in the commodity? Why change trade flows?
    0
    Comment actions Permalink
  • Avatar
    crampton
    I'm following the instructions for a Multi-Industry Contribution Analysis. According to the instructions, the commodity and trade should be customized so that the industries in question do not buy from each other--in order to avoid double counting impacts.
    0
    Comment actions Permalink
  • Avatar
    ScottL
    My understand is that you are going to aggregate them all into one sector. If that is the case, you don't need to make those modifications.
    0
    Comment actions Permalink
  • Avatar
    crampton
    Perfect! Thanks!
    0
    Comment actions Permalink
  • Avatar
    crampton
    One last question. I have both a sales estimate and a jobs estimate. Which one should I use to generate Indirected and Induced impacts.
    0
    Comment actions Permalink
  • Avatar
    DougO
    I would use the sales estimate in the event then "customize" the jobs in the event by replacing the default value with your value. Note, that it is the labor income (employee compensation and proprietor income) that will drive the induced effect. Employment is "merely" descriptive and will not affect the indirect or induced effects. Were you trying to set the entire impact for the industry equal to the total sales/employment you specify in the event? If so, to prevent the double counting you would need to edit change the by-products to only produce the primary commodity and set rsc for that commodity to 0. If you are specifying a marginal change to the sector, then having indirect and induced effects on that same sector is fine and editing is not necessary. to prevent double counting.
    0
    Comment actions Permalink
  • Avatar
    crampton
    I am trying to estimate the economic impact of an economic cluster that represents a subset of the aggregated sector that I created. Do I need to turn off trade flows for the all the industries involved? When you say "customize" the jobs estimate, do you mean replace the direct jobs estimate with the actual head count that I have and add it to the indirect and induced jobs that the model outputs to estimate the total employment impact?
    0
    Comment actions Permalink
  • Avatar
    DougO
    Depends, if this is a marginal change to the cluster, the other elements of the cluster can respond to that change. If you are trying to specify the entire activity as the direct effect, then any indirect and induced effects by that cluster would be double counting. In this case you would need to set the RSC for the commodity the cluster produces to 0. By "customize" I am referring to the changes you can make to the event. When you specify "sales" in an industry change activity type, the software generates estimates of employment and compensation and proprietor income. You can then replace those default values with your employment.
    0
    Comment actions Permalink

Please sign in to leave a comment.