Industry Spending Pattern

Hi Janice, The Industry Spending Pattern (ISP) only includes purchases of commodities, and will not include taxes and profits. If you do not have a way to estimate these values, we would recommend using this equation Output = Intermediate Expenditures + Value Added. Presumably of these, you'll know an estimated value of total output and of intermediate expenditures (your goods and services budget) so the remaining value is = Value Added. Value Added = Labor Income + Other Property Type Income(OPTI) + Taxes on Production(TOP). It sounds like you are able to estimate the Labor Income value, and then the remaining two categories are the ones you are looking for. the best way to estimate these if you have no better method is to find the most closely related sector in the IMPLAN scheme and use their ratio of OPTI and TOP to split the remaining Value Added portion. Please let us know if you have any further questions.

It looks like in the sector in question, the indirect business taxes are negative,perhaps indicative of subsidies. What to do with this information in an industry spending analysis?

Hi Janice, You are correct that the negative IBT is indeed due to subsidies. Since IBT is treated as a leakage (i.e., it generates no additional rounds of impacts), you do not need to include it anywhere in your model setup. However, in terms of being able to report a direct IBT, you can simply report the negative IBT (and subtract this amount from the positive indirect and induced taxes to get the total tax impact). If you are analyzing a different year than your model year or are modeling a particular firm/project as opposed to the entire industry, in which case the IBT for that particular year/firm/project might actually be positive, you would need to have some information about the direct IBT generated and then replace IMPLAN’s estimate with your known value. If you’d like to tell us which sector and state you are working with, we can look at a few past years to see if the IBT has ever been positive in the recent past. Please let us know if you have any further questions.

Thank you for your response. The sector is cotton farming.

Hello Janice, It looks like you are working with a 2011 GA State Package, but we would like to know which county(s) you are working with, or if you are working with the state so we can pull the most precise values for you. Thanks!

Actually for State as a whole, and for each individual county that grows cotton. I believe it is about 90 of the counties. Do you need the names of each?

Hello Janice, We will email you the data in a spreadsheet. The data is per million dollars and is for IBT across the years of 2008-2010. Let us know if you need additional help.