Public University Direct Impact _
Hello IMPLAN,
As always, thanks in advance for any guidance you can provide.
I am in the process (nearly finished actually) of conducting an economic impact analysis of a large public university using a bill-of-goods approach. We have data on university employment number, employee wages, salaries, and benefits, all procurement data, and student spending.
I have modeled procurement data to tabulate the indirect and induced impacts of the university and have modeled employee compensation and student spending to estimate additional induced impacts of the university. At this point, I have two remaining questions:
1. After running a model in IMPLAN, impact is reported in four categories: employment, labor income, value added, and output. Because we used a bill-of-goods approach, we have to tabulate direct impacts outside of the model (unless there is a better way to do this). From my understanding, for direct impact of a public university, employment would be the total number of employees, labor income would be equal to all wages, salaries, and benefits paid to employees, but how should value added and output be calculated? In the following article on using IMPLAN to estimate impacts of public universities, value added is equal to labor income- is that correct? Article here: http://www.aplu.org/document.doc?id=4484 How is output conceptually handled for a public university?
2. I will likely need to export tax impacts for this model. Due to the bill-of-goods approach used, I can export tax impacts for the indirect and induced impacts. I know that public universities do not pay most taxes, but are there some taxes that I need to account for (at the direct impact level) and how do I estimate this with IMPLAN? I should also note here that I have modeled the induced impacts due to employee spending through a change in labor income- would this cover all taxes that the public university itself would be paying?
THANK YOU! For your reference, I’ve included the different components that comprise each type of impact.
[b]Direct Impact:[/b]
- University
[b]Indirect Impact:[/b]
- Procurement (broken into payments to typical businesses by sector (industry change), payments to local governments (institutional spending pattern), and payments to local schools (institutional spending pattern))
[b]Induced Impact:[/b]
[i]Due to Direct Impact:[/i]
- University Employee Spending (Labor Income Change)
[i]Due to Indirect Impact:[/i]
- Procurement (see above, both industry change and two different institutional spending patterns)
[i]Other[/i]
- Student spending (Labor Income Change)
- Misc Additions to Income (Labor Income Change)
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IMPLAN SupportHi Claire. Output = total operational budget, capital expenditures are summed separately. Value added = sum of employee compensation, proprietor income, other property income and taxes. A non-profit or public university would only have employee compensation - so yes your Value Added would equal labor income. 2) The only taxes you would really be missing are the direct payroll taxes. To get an estimate of that, plug the total payroll costs (including benefits) into sector 426. In this sector Output = Employee Compensation. There the direct Tax impacts will only be payroll taxes. IMPLAN does not have different payroll tax rates for different industries so this works.0
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