Measuring Impacts of Industrial Park

I am hoping to estimate the impacts of the presence of an industrial park, containing a number of businesses. I have data on each firm's aggregate salaries and number of employees. Is it best to measure the impacts using the employee numbers or via salaries, therefore allocating salary-induced spending by sector via the household demand vector? Thank you.
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  • Hi Ash, If you have data on each firm's aggregate salaries and number of employees, you can use both pieces of information to measure the impacts of these businesses in the industrial park. You can do this in one of two ways. First, you could just run the entire analysis as a single Industry Change Activity, editing the Event to reflect your known values (aggregate salaries and employment). Second, you could use an analysis-by-parts approach to run an Industry Change Activity editing it to zero out Employee Compensation and Proprietor Income. Then you would run a Labor Income Change Activity splitting aggregate salaries into employee compensation and proprietor income, using an appropriate value added split between EC and PI for your particular industry sector. Since the "Analysis by Parts" approach estimates only the indirect and induced effects, to get the total results, you would sum the impacts from the Labor Income Activity with the impacts from the Industry Change Activity, to which your direct effects are added manually to the modeled impacts. This is the analysis-by-parts approach. The following link to an article describes in detail the analysis-by-parts approach. We hope this helps.

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