adding a new sector to a county

mahalingam

November 12, 2015 18:11

Hello, There is are two new sectors coming to the region in 2016. Two new companies are to be located in one county but this county (Limestone County) does not have those sectors (Sector 367 and Sector 358). However, an adjacent county (Madison County) has both sectors. Since the companies will be located at the border of both counties (but owned by the same city), I am thinking of using the data from the adjacent county (Madison) to change the study area data of the county in which the company will be located (Limestone). My question is what employment numbers do I use to set up/change the study area. The proposed employment numbers by the company (which means I will have to vary the data for all other inputs like Employee compensation, proprietor income, other property Type income etc) or the employment that already exists in the madison county? The new companies that are going to be located here, are also proposing an increase in employment over the next few years. I only have proposed employment and average employee compensation data for these companies. Of course this will be an MRIO study for both counties including 6 other counties. So I do not want to double count any employment numbers. How should I set up the sector? Thank you in advance

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4 comments

IMPLAN Support
November 15, 2015 03:55

Hi Brinda, Thank you for your post! To establish the most accurate Employment to Employment Compensation ratio, we recommend using your Employment and Employment Compensation values as the Totals column. If the company will have no Proprietors then you should leave that zero, you can then mimic the TOPI (Taxes on Production and Imports) and OPI (Other Property Income) total values from the neighboring county. This will create a custom set of relationships for the new Industry that will use Madison as a proxy for TOPI and OPI, and known values for Employment Compensation and Employment, creating a custom Value Added to Intermediate Expenditures ratio for that county. As far as double-counting Employment, Employment is based on site of work, so there should be no issues as long as they are working in the plant and the plant is located in Limestone County. If you are setting up a unidirectional MRIO there should not be any concerns with double-counting in the MRIO Scenario either. I was wondering if you were looking to do a multi-year analysis? If so, please let us know as there can be double-counting traps in summing across years with Employment values.

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mahalingam
November 16, 2015 15:35

Thank you for your response. Yes we are doing a multi year study. The employment numbers given by the company is distributed over five years for one company and three years for another company. I have the numbers for each year. Once I input the first year data, will the model build on top of the first set of data or should I change the study area data for each year? Do I also need to add the Output (Value of Production)? I am assuming I use the "Edit totals and then update per worker values" and the "Total" column to change the data when you say "we recommend using your Employment and Employment Compensation values as the Totals column" Thank you,

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mahalingam
November 16, 2015 15:50

Could you also tell me how I set up a multi-directional versus a unidirectional MRIO? Thanks,

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IMPLAN Support
November 17, 2015 16:42

You can use the same Model as this will the study region but since you have the split for each year, have each year but a new Activity. This way you will only need to change the underlying Study Area Data only once as you are only building one Model. Hi Brinda! I apologize for the confusion about the order of operations when customizing your Study Area Data. Your Employment value is entered first at the top of that screen then you would select "Edit totals then update per worker values" to enter your Employment Compensation totals. You should only need to edit the Totals column. The Employment value should not be summed, because while the values of Labor Income, Value Added and Output will all be summative across years (assuming the same Dollar Year for View) if you have 10 jobs the first year, 20 the second year and 30 the third year, the total number of jobs is 30 not 60.

A point I wanted to make about a difference of multi vs unidirectional MRIO is you will need to build separate folders for each Direct Effect. This is dependent on the number of regions that have a Direct Effect. For each region that has a Direct Effect you need a whole set of Models. As there can be only one Direct effect Model in an MRIO.

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