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Disaggregation of particular sector/s

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sgalinato
Hi. I am trying to estimate the economic contribution of the potato industry in our state. However, the different sectors that comprise the industry are parts of the sectors classified in IMPLAN. For example, potato farming is in IMPLAN's Sector 3, dehydrated potato products and frozen potato products fall in IMPLAN's Sector 83, and potato chips manufacturing is in IMPLAN's Sector 100. I am thinking of creating new sectors, for example, in the case of potato farming, by using an unused or non-existing industry in our state (e.g., Sector 33) and editing this industry to reflect the spending pattern and production of potatoes. I will do the same for the other sectors (dehydrated potato processing, frozen potato processing, etc.). Is this an acceptable approach in IMPLAN? Is there another way to do this type of analysis where the particular sectors of our study are disaggregated from IMPLAN's sectoring scheme? Any pointers are much appreciated.
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    IMPLAN Support
    Hi Suzette, Your analysis can certainly be conducted in this manner however this will take many steps. It is important to note that you will still need a Sector for each of these types of potato processing since each will have different ratios of Value Added : Intermediate Expenditures, Output per Worker, Labor Income/ Output, and spending patterns. If you have the data to separate out each of those spending patterns from the larger spending pattern it is certainly legitimate to do so. However, the other caveat of this is that you need to back out the values that you are using in your potato processing out of the Sectors you are disaggregating them from. Otherwise you will end up with total higher GRP, labor and production in the region that exists, and you will also artificially deflate the RPC's for all commodities and thus artificially shrink the entire set of regional Multipliers. So for example if Sector 3 looked like: Employment: 100 Output: 100,000,000 Value Added: Employment Compensation: 10,000,000 Proprietor Income: 1,000,000 Other Property Type Income: 10,000,000 Taxes on Production & Imports: 1,000,000 Total Value Added: 22,000,000 Intermediate Expenditures: 78,000,000 And Potato Farming (PF) was: Employment: 50 Output: 10,000,000 Value Added: Employment Compensation: 1,000,000 Proprietor Income: 100,000 Other Property Type Income: 1,000,000 Taxes on Production & Imports: 100,000 Total Value Added: 2,200,000 Intermediate Expenditures: 7,800,000 Then in addition to creating a new Sector for Potato Farming you would need to reduce Sector 3 Employment: 50 (100-50 PF) Output: 99,000,000 (100,000,000 -10,000,000 PF) Value Added: Employment Compensation: 9,000,000 (10,000,000- 1,000,000 PF) Proprietor Income: 900,000 (1,000,000 - 100,000 PF) Other Property Type Income: 9,000,000 (10,000,000- 1,000,000 PF) Taxes on Production & Imports: 900,000 (1,000,000 - 100,000 PF) Total Value Added: 19,800,00 (22,000,000 - 2,200,000 PF) Intermediate Expenditures: 56,000,000 (78,000,000- 19,800,000 PF) So both the new Sector and the old Sector require new information to keep the Model balanced. Then if you are interested in doing a contribution, this is a good example of [url=http://implan.com/index.php?option=com_content&view=article&id=366]multi-Industry contribution[/url].
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