how to deal with incommuters

multnomah1

February 27, 2011 06:33

Could you please advise on the following: How to incorporate into a small regional model the leak of about 85% of the wages earned by in-commuters? In other words, how to exogenize those wages that should not be accounted for estimation of multipliers given that they are not spent locally. The employer of the incommuters (government) is the largest one in the regional economy. Because of this employer, the local economy looks wealthy but this is not the case. Members of this community would like to know their multipliers adjusting for the money they never see. Thanks.

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2 comments

DougO
February 28, 2011 22:24

V3 actually makes this simple. In the impact analysis event line, after you specify the "sales value" - ie, the value of the construction project the software fills in the employment, employee compensation and proprietor income associated with that value of construction. You then change the employee compensation to 15% of the initital value. Only that 15% will be used to drive the induced effect.

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multnomah1
March 01, 2011 06:52

thanks for the reply, I will try it.

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