Payroll by place of residence as an event
I have good data on where oil industry workers in Alaska live, which is quite different from the numbers for where they work. Are there any issues I should be concerned with in modeling the impact of that payroll using the appropriate household income level for the various sub-state regions I'm interested in?
My idea is to separately model payroll by place of residence and nonpayroll industry spending and then combine the results.
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If you are introducing the non-payroll spending as final demands (ala analysis-by-parts) it will work. You are assuming that the labor force buys nothing locally. If you are using the default production function you may either import the industry to run as final demand or impact the industry sector as normal but customize the event by setting employee compensation and proprietor income to 0. That will force all value added into other proprietor income which is treated as a leakage.0
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