Household Income change
I am using "household income change" as the activity type. I compared "household $10-15K" and "household $15-25K" by entering the same amount. With the lower income HHs employment income is slightly lower (the total amount I entered was only $25 million), but labor income and output impacts are slightly higher. What is the explanation for that?
Thank you.
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IMPLAN SupportHello Hulya. Without looking at your model, we suspect that the main cause for the difference is the savings rate, which is probably higher for the higher income households versus the low income households in your study region. All else equal, the higher the savings, rate, the lower the percent of income spent on commodities and the lower the impacts, which is why your impacts are slightly different. As you know, low income households tend to save less and spend more of their incomes. In the IxC SAM (Explore > Social Accounts > IxC Social Accounts Matrix), the Household columns' payments to the Capital row represent net savings, which includes paying down debt (i.e., principle). So the savings rate can be calculated by dividing the household column's payment to the Capital row by the column total. We hope this answers your question.0
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