Imported Spending Patterns vs. New Activities

Hi! What is the difference between the Institution/Industry Spending Patterns that can be imported into the Model and those that are added through the New Activity option? Thank you very much! Andrew
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  • Institutional Spending Pattern are available for import that can be used to estimate impacts of government programs or can be modified to fit your specific program. Institution Spending Patterns can be useful when dealing with government and government programs. When you import this type of spending pattern into your model from the New Activity Screen, you will notice that the sum of Event Values equals zero. To obtain your coefficient values for the spending pattern, you will divide the value spent on each of the items in your budget by the total budget to determine the coefficient to enter into our Activity. After you enter your coefficient values in your spending pattern, you should notice that at the bottom of the window the Event Value should now equal to 1.00. The spending pattern should equal to one because State & Local Government Payroll is an available commodity sector in the region and you are spending the entire amount of your budget. Institutional Spending Patterns are actually the first round of indirect purchases made by our budget/program. To capture the full effect of the impact you will need to add in the number of employees associated with the budget or program and the total budget amount of Institutional output. With this spending pattern, you do not need to do a Labor Income Change Activity as is the case with an Industry Spending pattern. Industry Spending Patterns can also be imported from IMPLAN's library using the Activity Options. Like custom created spending patterns, Labor Income and direct effect will still need to be figured and added to the total impact. Industry Spending Patterns typically do not include labor income expenditures, and therefore the coefficients sum to less than 1.00. Since you know what the non-labor portion of your budget or project, you would set the activity level in the spending pattern to amount. To ensure that the full impact of spending in an Industry Spending Pattern is captured, you would need to create a Labor Income impact to compliment you Industry Spending Pattern and is discussed below. You can use an appropriate sector (close to the Industry Spending Pattern chosen) to proxy the labor income change, using the values for employee compensation (EC) and proprietor income (PI). You would create one Activity and two events: one for EC and another for PI to model the change. As far direct jobs and output, again, when you run your Industry Spending Pattern and Labor income Change, there will be no direct effects. So when you sum the impact results from these two simulations, you would need to insert your direct estimates of jobs and output into the results, keeping the indirect and induced jobs and output estimates.

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