analyze the negative impact of shortfall in fundin
Dear Implan Staff:
I need to analyze if the operating budget is reduced by 15million, and jobs loss of 200, how does that impact the economy? and also if the ridership of a bus company reduce by 3m-4m annually, how does that affect the economy?
How can I set up the problem in the IMPLAN?
Thanks a lot,
lotus
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IMPLAN SupportHello Lian, Implan is a linear model so you can simply type the (-)sign in front of your Industry Sales value to show that the impact is negative. Since you have jobs (you will want to convert this value as well, and you may want to consider adjusting the income values as well if you can get that data or based on the compensation/worker values prior to your editing the Employment data. There are a couple of considerations here: [ol] [li]If you are looking at the entire industry, not just a portion of it, you will need to do a contribution analysis.[/li] [li]Negative impacts will always have some element of overestimation in them, as some local suppliers will supply other vendors or export their production and regain their business loss, or some portion of it in a relatively short time span, and spending by households does not come to a complete stop when they become unemployed. Most households will spend out of savings or receive unemployment benefits for at least some period of time, thus sustaining some household spending in the economy. There is unfortunately no good way that we have to estimate this, but we want to be sure that you are aware of this caveat. [/li] [/ol] In regards to the ridership reduction, you would need to have a value of bus ticket sales to associate that too, in order to be able to model it in IMPLAN. Hopefully this helps.0
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