Effects of consumer spending from new residents
Hello,
I'm estimating effects of increased consumer spending from new residents in the Town. I used Consumer Expenditure patterns' average annual expenditures to estimate the increased spending for the households that would be introduced by a residential development. I have also estimated how much would be spent in the Town. I have spending estimates for Sectors 321 Retail stores- Furniture and home furnishings, 323 Retail stores building material and garden supply, 326 Retail stores- gasoline stations, 328 Retail stores- sporting goods, hobby, book, and music, and 413 food services and drinking places.
I was planning on running the estimated spending estimates through the above sectors in an "industry change" activity. Is this the correct approach? Or, should I use the commodity change activity type?
Thanks for your assistance.
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IMPLAN SupportHi Jocelyn, Industry Change would be the correct approach. You would only want to use a Commodity Change Activity Type if you knew that a commodity was being purchased in your region but you didn't know who was producing it (e.g. I know that residents purchase electricity, but I don't know if it is from a local private or public provider). The problem you have setup will show you the increased impact to local retailers and restaurants in your region. If you have estimates of how much is spent locally you can either enter just the 'local' value into Industry Sales leaving the LPP at 100% or you can enter the entire expenditure value and set LPP to your estimate using the User LPC function. We typically recommend noting your estimation methods in your report, so that it can be duplicated by others who may want to reproduce your study. One other note, you will probably want to state the assumption that you are assuming that the development will bring entirely new residents to the Town, rather than being a mix of current residents moving into the new area and new residents. --Implan Support Staff0
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