S/L ED Institutional spending pattern vs Priv Coll


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    IMPLAN Support
    Hi Lisa, Thank you for your post. It's a definitional difference. Because Institutions make purchases for final demand, like Households, it is presumed that what would be called the first-round Indirect Effects will need to be separately described and thus are considered their 'Direct' expenditures. In addition, because the SAM needs a way to account for payroll and the capital consumption allowance (the depreciation factor that is the difference between VA and LI for government Sectors) for government workers, these Sectors are added into the SAM as 'industries' without Intermediate Expenditures. If you wish to conform the spending pattern to look like an Industry Spending Pattern, you can delete the payroll component (which is significant because the majority of government expenditures go to payroll) and run that separately in the appropriate equivalent Industry Change Activity Sector. Then the reported Direct Effects from the spending pattern will reflect the first-round Indirect Effects and can be summed to the remaining Indirect Effects if desired. Thanks!
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