Very basic question about SAM

Hi Gimel, The software actually won’t show those changes in demand, but you can calculate them from your results by using the SAM. To calculate the distribution to local households you will need to start by looking at the aggregate SAM for you region. You will want to copy out the values paid by the Employee Compensation (EC) and Proprietor Income (PI) columns to the Household Income Type Rows. You will then sum the EC and PI for each Household Income Category to have a single Labor Income paid to household type value. From the SAM you will then need to pull the total payments from EC and PI columns and sum these two totals. Dividing the payments to each Household type by the total will provide a ratio of distribution by Household Income Type. You can then take this coefficient and multiply it by the total value of Labor Income payments to determine how much of the total labor income went to each Household category.

Sorry I still don't get it because all proprietor income and employee compensation only to industries in the scenario results. Where can I find the distribution? I know it is in the SAM but then how I can relate that to the shocks that I have made? If you don't mind, could you elaborate more of the steps like with a simple example to do it? Thanks Gimel Israel

Attached is an excel spreadsheet as an exapmle for these instructions. It if from a 1 million dollar impact in sector 99 from a 2007 Washington County, MN Model. 1. The SAM (Social Accounting Matrix) is located under the Explore menu and in Social Accounts. Click the Aggregated SAM View-By option. 2. Sum accros the two colums for Household income values for EC and PI to have a single Labor Income paid to household type value. 3. From the SAM the total payments from EC and PI columns are at the bottom. Sum these two values for a total Labor Income value. 4. Then divide each household sector total by the total LI value 5. You can then take this coefficient you have generated for each Household Income Group and multiply it by the total value of Labor Income payments to determine how much of the total labor income went to each Household category.

Thank you very much. I have checked the Excel and try to do it using the example. Small question, how you got $ 5452043 while I only got $ 566146 much lower than your result by using the same shock of $ 1 million in sector 99. I took the number from Labor Income Total Effect under Scenario Results. Best, Gimel Israel

Our mistake, Gimel. We actually used a $10MM value to sector 99. The Event Year will produce a different result due to deflators. Our event year was set to 2007 for that analysis. Let us know if you have more questions.

I think now I got the results close enough $ 5 661 463 with year event 2007 and dollar year 2012 while you got $ 5 452 043. One more question, if I extract and build my own SAM based on IMPLAN data, which accounts I should treat as exogenous in your opinion to produce the same results as in IMPLAN for say our current example of injection in sector 99.

Hi Gimel, The value posted yesterday I believe had both the Event Year and Dollar Year for View set to 2007, hopefully if you set the Dollar Year for View to 2007 you will get an identical number. With the default Multiplier build in IMPLAN we only treat households as endogenous. State and federal government activities, capital, enterprises and inventory are exogenous.