Support for Orange County Data

Hello, I have a question related to the indirect effect from “State/Local Gov’t Education” results. It would be of immense help if you could give shed some light on this. It’s very simple, I set up a new activity from the “Institution Spending Pattern” option, chose “State/Local Govt Education” (we are doing a study on the impact of community colleges on the economy of Orange County), then I input the operating budget of the school district into the “Activity Level” $160,945,600. From here I get results of 2,112 for employment (Direct Effect) and 3.1 (Indirect Effect). Can you please tell me why my indirect effect for employment is so low compared to the direct effect? Am I doing something wrong? I greatly appreciate any help you can give me. Thanks
Was this post helpful?
0 out of 0 found this helpful

Comments

21 comments

  • This is happening for a number of reasons (none of which is anything you did wrong): 1. The main thing to note is that 98.65% of the budget is being spent on labor (the Coefficient for commodity 3438 is 0.9865). This means that only 1.35% of your budget is spend on goods and services - these purchases are what drive the indirect effect. You will see that you have a relatively large induced employment effect - this is from college employees spending their wages, and the workers at those places spending their wages, and so on. If you think/know that your college spends a lower percentage of its budget on payroll, you can adit the coefficient and then rebalance the spending pattern (Event Options > Change All > Normalize Events) 2. The next thing to note is that not all of the goods and services purchased by the college are purchased locally - these imports are found in the "LPP Imports" box of the Scenario Results screen. Imported goods have no local impact. 3. Finally, note that some of the goods and services purchased by the college are purchased from institutions (households, government, inventory) - these institutional purchases are found in the "Direct Institution Change" box of the Scenario Results screen. Purchases from institutions are treated as leakages and do not generate additional local impact.
    0
  • Thank you very much for your help, greatly appreciated!
    0
  • I had one more quick question, when I change the labor Coefficient to the percentage I know the school district is spending on labor, how do I rebalance the spending pattern for all other coefficients? Thank you very much again!
    0
  • Hello, I had a question about adjusting my commodity coefficient related to my first question. The Coefficient commodity 3438 (labor payroll) is set to 0.9865, when I know that it only accounts for 0.83. How do I redistribute the extra .1565 among the other commodity coefficients evenly? You mentioned "rebalancing the spending pattern" but the coefficients did not add up to 1 when I made the change and tried to balance the rest. Thank you very much for your help!
    0
  • You tried this method? Event Options > Change All > Normalize Events
    0
  • Yes I did, but when I do it reverts the Coefficient I changed back to its original value. So when I change Coefficient commodity 3438 (labor payroll) from 0.9865 to .83 and then use the "Normalize Events" method, Coefficient commodity 3438 goes back to 0.9865. Can you please tell me if I am doing something incorrectly? Thank you!
    0
  • If you look closely, you should see that the coefficient does not go back to exactly what it was before, but some value between 0.83 and 0.9865. The issue is that ALL coefficients are a part of the re-normalizing. But if you keep re-entering the 0.83 (or an even smaller coeffient to speed up the process) several times and keep renormalizing, it will eventually get there. Alternatively, you could just delete that Event and run the payroll separately as a Labor Income Change. Note: if you use this approach, then after normalizing the spending pattern you will want to set the Activity Level to just the non-payroll portion of your budget, rather than the entire budget.
    0
  • Hello Again, I had another question regarding my direct employment results. I was able to get the actual employment headcount of the school districts from their website and found that the number to be off by a by a few hundred employees. For example, the district website gave me a headcount of 2,400 but the employment results from IMPLAN was around 2,067. Would you be able to tell me what would account for this? I just want to know what I should accredit the extra impact to. Again thank you very much for your help.
    0
  • The State/Local Gov Education Spending Pattern is for elementary, high school, and higher education. The direct employment estimate is based on the average output per worker ratio for the all the public schools in your model study area, which may differ from the output per worker ratio for the particular school district you are modeling. My suggestion would be to replace IMPLAN's Direct Employment figure your known employment figure - known data always trumps our estimated data.
    0
  • Hello again, I had another question related to your response. If I input my budget and get employment data (from IMPLAN) that is not the same as my know employment data figure, can I proportionately change my induced effect from the IMPLAN results to match my known employment data? Again thank you for your help.
    0
  • The direct induced effect stems from the direct Labor Income value, not the employment figure. Employment is merely descriptive, in the sense that it does not itself generate any additional impacts. So if you specified the payroll coefficient to your known value and set the Activity Level to your known budget, then all the induced impacts should be fine. Your spending levels are correct, so the jobs stemming from those expenditures are correct.
    0
  • Hello, I was interested in finding the social benefits of investment in public education. Can you please tell me if there is a way to measure social benefit using the Version 3 software. The social benefits I was hoping to measure were health related savings, crime related savings, and welfare and unemployment savings. If not the IMPLAN model, do you know of a way these things can be measured? Thank you for your help.
    0
  • IMPLAN is an Input-Output modelling application, which means it tracks money flows through its backward linkages to show the economy supporting an activity. There are no qualitative measures built into the data base. There is literature on measuring qualitative impacts but I am not familiar with it. Someone else might be able to guide you through it, but I can only suggest Google.
    0
  • Hello, I have something of a general question, so please don't hesitate to be broad. I am planning on including a return on investment portion to our study and I was hoping you could tell me the best way to approach presenting ROI analysis using IMPLAN data. Most likely this would be from the perspective of the taxpayer and the student. Any approaches that use the IMPLAN model would be greatly helpful. Thank you!
    0
  • I assume you are looking at the rate of return to state coffers as a result of operating and construction costs associated with subsidizing a university. The costs would be the net investment (ie, total state costs minus tuition and donations). The return would be the tax impacts from you analysis from the tax impact report. You can compare the year to year results or I suppose bring the expected future year investments and return to the present with an interest/deflation rate.
    0
  • Hello, I had a quick question about measuring the impact of a person's income on the regional economy. Our hope, after establishing the increase in a person's future earnings due to education, would be to input the increase in those earnings into the model and measure the impact. Specifically, I was looking for the steps needed to calculate this effect. Thank you for any direction or help you can give me.
    0
  • 0
  • Hello, I was trying to view the NAICS multipliers for Orange County and they seem to be at the 4 or 5 digit level. I was wondering if there was a way to view them at the 2 or 3 digit level? It would be very helpful to not have to sift through such a large number of codes. Thank you for your help.
    0
  • Hello Again, I was trying playing around with my features and I can no longer get access to my multipliers (please see screenshot). Can you please tell me how I can re-access my multipliers? Thank you. [attachment=346]Screenshot.JPG[/attachment]
    0
  • There is a way to view the NAICS multipliers in 2 or 3 digits. This is done with the [url=https://implan.com/v4/index.php?option=com_multicategories&view=article&id=556:556&Itemid=10]Model aggregation[/url] function. Your multipliers menu seems to be hidden. Please open up this function by clicking File>User Preferences. Select the Analysis tab and click [url=http://implan.com/V4/index.php?option=com_multicategories&view=article&id=561:561&Itemid=71#activity]Advanced Modeling[/url] check box. Let us know if you have any further questions.
    0
  • Problem resolved, no help needed at this point. thank you!
    0

Please sign in to leave a comment.