Production Function terms and exporting
Hello,
I wanted to make sure I'm understanding the "Edit Industry Production Function" screen. Specifically, what does the Total Absorption Value refer to? I'd thought it was the commodity % spent on the industry/commodity in question. For example, sector 36 has value of 0.487194. I took that to mean that % was spent on construction, while the rest, 0.512806 value added field was spent on the commodities list to the right. But I think that is incorrect. Could you help me understand what they represent?
Secondly, the commodities coefficients on the right refer to the % of various commodities used in that industry's production. This is what drives the indirect spending I believe. Right?
And finally, I'm having trouble exporting this. I go to options>library>export - and it seems to export the list, but I can't tell where it goes, if anywhere.
Thanks much.
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HI Ryan Thank you for your post! The information found in the Edit Industry Production Function is similar information that can be found in the Explore > Social Accounts > Balance Sheets screen and here you can see the complete Intermediate Expenditures including the Regional Absorption, you can also see the breakout of the Value Added components. Total Absorption is the total value of the Intermediate Expenditures or commodities on the right for your choosen sector and this is the Gross value. Then the Value Added field is the value that is going towards compensation and taxes (Employee Comp, Proprietor Income, TOPI and OPI). The total equation involved is Output = Intermediate Expenditures + Value Added. Hence the Absorption + VA = Total Production value. You are correct that the commodities on the right drive the first-round of Indirect spending. Unfortunately, this screen is not able to be exported out of the software. The Options > Library > Export, allows you to import production functions. You need to export the production function out to the library before it can be imported into your model. However, if you are wanting to get the spending pattern out of the software for the Industry, you can get the unaltered spending pattern for the desired Industry by importing the spending pattern through the Activity Options>Import> Industry Spending Pattern for that Industry and exporting it to Excel. If you have created a custom spending pattern, if you apply it to an empty Sector and once you have rebuilt the Model you should be able to import that Industry Spending Pattern after the Model has been reconstructed through the Options menu. Thanks!
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