Direct vs Indirect Impacts
Hi,
I am conducting an economic impacts analysis of a government entity that contracts out most of its research activities to various private companies. My question is: Should I count private company's payroll and expenditure associated with the contract as direct impacts? I think it is a question of how to treat contractors' and subcontractors' payroll and expenditure data.
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When you apply and impact to the software for the spending on the private company, the software will show the employment of the private company to be direct. However, it all depends on how you want to present the story. I wouldn't put it in terms of direct, indirect and induced, but rather tell the story of the Government budget, the main contractors/subcontractors and the additional economic activity generated beyond that.0
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