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christine.byun@brattle.com
Hi, I have a few questions regarding several IMPLAN analyses I am running: [ol] [li]Does Value Added attempt to distinguish between Other Property Type Income (“OPTI”) that would be captured by people and companies in the study area rather than by entities located outside the study area? For example, would IMPLAN’s estimate of value added have adjustments that were meant to exclude from value added in the study area the profits earned at a Costco store in located in New York state (since Costco is incorporated elsewhere)? If IMPLAN accounts for OPTI captured by entities elsewhere, what is the basis by which it does this for zip-code level analyses?[/li] [li]The forum Q&A shown at the link below states that that IMPLAN is currently based on a regional net commuting rate at this time. I wanted to confirm that this is still the case and that commuting rates in 2013 data are still based on county-level journey-to-work commuting patterns, and does not utilize zip-code commuting data. Is this correct? http://test.implan.com/index.php?option=com_kunena&func=view&catid=80&id=17095&Itemid=35[/li] [li]Are there any documents you would recommend reading that would describe the best way to understand the IxC Social Accounting Matrix?[/li] Any advice would be appreciated. Thank you. [/ol]
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    IMPLAN Support
    Hi Christine Thank you for your post! 1. IMPLAN reports the OPTI value, which includes corporate profits and dividends, by only what is occuring in the geographical region of the Model. Now, OPTI does not get applied to the Multipliers, the rounds of spending does not include OPTI as we do not know how those Profits and Dividends are spent or even if they are spent. OPTI is leaked from the region! 2. You are correct, IMPLAN is still based on a county and state level net commuting rate and not zip codes. 3. Here is an article about the IxC SAM: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=294#columns
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    christine.byun@brattle.com
    I am running a study that involves adding new jobs to a particular industry. With respect to the re-spending of wages earned in those jobs, what is the assumption about that spending? Does IMPLAN assume all new wages are new spending, or does it have an assumption that some of those new jobs will be held by people that are already spending in the local economy (e.g., because they have a job already outside the study area or because they are on some form of government assistance?)
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    IMPLAN Support
    Hi Christine! This is exactly IMPLAN's assumption that new wages are new spending to the region. As if the setup of your study is the Industry and number of jobs it is increasing, then IMPLAN will assume this is new spending. However it will apply the built in ratios of commuting so it will not spend all of the Wages/Salaries as some will leak from the region. IMPLAN is not robust to know if some of those new jobs will be held by people that are already spending in the local economy. It sounds as if they live in the region but work outside of it. We don't assume that everything these new households purchase will be purchased locally and that we also take into account household savings. If some of these employees are people who are either working a second job or are switching jobs, you would be overstating the impact to include them. If you know the number or proportion of employees that are new to the region, you can modify the direct Employment and Employee Compensation values in your Event accordingly. Thanks!
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