I have a few questions about the analysis of a grant program. The program involves the hiring of doctors in underserved areas, and my goal is to estimate the economic impact of doing so (on both the county the state level) and compare that to the cost of the program. I have specific location, facility (and IMPLAN sector) of each doctor, and his or her salary. There are around 10 total doctors hired during the study year.
The individual impact of each doctor is small. For each placement, I enter an increase in employment of 1 in the correct sector (hospitals, offices of physicians, or offices of dentists) in the relevant county. I edit the labor income to match the salary information I have, but do not change anything else from IMPLAN’s default settings. The study area for each analysis is a county.
This is not the type of analysis for which I have used IMPLAN before, so overall, I want to know if there is a better way to do this than with my current approach. Specifically:
I don’t have this specific information, but it is generally assumed that these doctors are full-time employees. Should I be using the headcount to FTE conversion and actually adding more than a single employee to the sector to reflect a full-time hire?
Because the output per worker is likely higher for a doctor than the average for all employees in the hospital industry, is there a better way to approximate the doctor’s actual impact on “sales” in the hospital without bringing in additional outside information? I know that editing the labor income only affects the induced effect, and I assume I am understating the true production impact of each doctor. I don’t have information on the “fully-loaded wages” or total compensation package for each doctor, so I’m replacing the labor income value with only a salary figure, so I’m already probably understating the induced impact. At some point, I hope to put some numbers together on the doctors’ productivity, but do not currently have those figures.
In aggregating up to get the state impact, would it be reasonably accurate to sum up the individual county impacts? Because the impacts are small, using multi-regional models does not significantly change my individual results for each doctor. I figured that going through each county and doing separate MRIOs might not be worth the trouble, but it’s certainly something I could do.
I am particularly interested in the state and local tax impact of this program. Is there anything that I am doing, especially with respect to aggregating county impacts, that would skew the tax results incorrectly? I’d prefer to give a conservative estimate of the impact, but would like it to be as accurate as possible.
I apologize for the long post, and thank you in advance for any guidance or assistance you may offer.
Please sign in to leave a comment.