Measuring Impacts of Local Gov. Using Sector 533
Hello,
I am working on an economic impact analysis of a Government Center that will house local (County) government employees. Our study seeks to quantify the total impacts to the economy of a small City where the center will be built. We know how many employees will occupy the center, and have entered this number as an event using the "Employment and Payroll of Local Government, Non-Education" sector (#533). When analyzing this scenario through IMPLAN, the results show direct impacts and induced impacts, but indirect impacts are zero. Is this zero a valid result, or is there some type of error? If this result is valid, what is the rationale for having no indirect impacts?
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Hi Jessie, Thank you for your post! Those Sectors should be used in specific instances and when used should be used in combination with SpendingPatternsNoPayroll_for_Programs_by_SLGovt imported spending patterns. To look at the complete impact of State & Local Government NonEducation you would want to use one of the Institutional Spending Patterns. The most common (State & Local Government NonEducation) is the found at the Activity Options>Import> Institutional Spending Pattern pathway. These already INCLUDE the appropriate payroll Sector, so you would not want to add any additional Activities to capture payroll. If you are wanting a more specific spending pattern you can also select one via the Activity Options> Import> From Another Model. Direct the file structure back to the IMPLAN User Data folder and then select Utilities and the SpendingPatternsNoPayroll_for_Programs_by_SLGovt. Here you can choose from a variety of operational spending patterns that have higher level specificity. These patterns, as indicated by the title do not include payroll, so the value entered into Activity Level should be equal only to the goods and services budget, and then a separate Activity can be run the payroll value using Sector 533. A couple of things to note if you choose to use the NoPayroll spending pattern: 1. Both Activities can be included in the same Scenario but it can result in some messiness in sorting out what is truly a Direct Effect and what is actually an Indirect Effect so we recommend running these in separate Scenarios. 2. Because these are Institutional Spending Patterns (assuming that you run this in a separate Activity), the reported Direct Effect is actually the first-round of Intermediate Expenditures, so to format the results to look more like Industry analysis, you will want to add the reported Direct Effect results to the Indirect row and then add back in the original college budget to the Direct row and the Total Effects. 3. Most likely, for Sector 533, you will be working with your payroll value. You will want to enter this value into the Employment Compensation field and let the Industry Sales be estimated from this value. For this very specific type of Event, Industry Sales = Output = Value Added. While the payroll will be the majority of Value Added, Value Added does include some additional factors. The reported Direct Effect in this Event will actually report the correct Direct Employment, Labor Income and Value Added, but the Direct Output should be the total value of expenditures (budget + Value Added). Thanks!
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