event industry sales and local material expenditur

Hi Carolyn. When you plug $4 million into sector 36 the multipliers associated with sector 36 already assume that a portion is going to Labor and a portion is going to buy goods and services with associated import rates already assumed by the software. Also, the direct employment will be based on a $4 million project instead of your $6 million. The easiest way to model your project is to enter the entire $6 million as the event industry sales in Sector 36, then edit the employee comp to $2 million and zero out the proprietor income. If you don't see the "Employee Compensation" item in the event line, go to Event Options > Show> Show All. After you enter the $6,000,000 you can replace the default values for employee compensation and zero out proprietor income. The software will display the little exclamation point icons to signify the values are no longer default. You should set your Event Year before entering your event value of $6 million to insure that the model picks up the correct deflators to apply to your value. Now you can run your results We hope this helps.

Thank you for the response. Because only $2.5 million will be spent on non-labor expenditures in the study area, should event industry sales be entered as $4.5 million? Wouldn't estimating indirect and induced impacts based on $6 million of spending overestimate the total impacts in the study area?

Hi Carolyn. Yes you are correct. Please contact us if we can be of further help.