Negative proprietor income and zero values

Hi Omkar. Here is a more complete explanation and solution for dealing with negative proprietor income (PI). You are correct in what you say about deleting out the negative PI and that it is not uncommon to have negative earnings for some industries in a particular county. With that said, here is a further explanation and discussion on dealing with this type of occurrence. It has to do with Household demand, in that Proprietor Income is included as part of total Labor Income. Proprietor Income consists of payments received by self-employed individuals and unincorporated business owners, and includes the capital consumption allowance. It is an indicator of the profit of self-employed persons and can be negative in some years/sectors/regions. If the negative Proprietor Income is large enough this can create a negative Direct Labor Income multiplier, which suggests a negative Proprietor Income that is greater in magnitude than the positive Employee Compensation. If the negative Proprietor Income outweighs the positive Employee Compensation, then household spending (which drives the Induced effect) will be negative (i.e., households will spend less). While these cases reflect the true state of the sector during the data year, they yield unexpected results when running impacts. Thus, if you are modeling a positive impact in a sector that has negative PI, you may want to edit the study area data to reflect the PI of your firm/project. If you don't have information about current PI, you could set PI = $0 or use a ratio (e.g., PI per employee) from the most comparable industry. After making any edits to the study area data, you will need to reconstruct the multipliers (Options > Construct > Multipliers), which should then be positive. We hope this answers your question.