Change in disposable income

Hi - I am modeling a project that results in changes in utility bills for study area residents, which would change disposable income. I am using the Household Income Change Impact to model the effect. I have a question on reporting the impacts. For example, if my direct estimate is a $2.0 million reduction in disposable income and the induced impacts from the model are $1.5 million in output. Do I add the two impacts together as the total induced effect or just report the induced effect from IMPLAN? Thanks! Gina
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  • Hi Gina, Thank you for your post. You will not want to add them together, but you can tell the story of an initial $20MM dollars of expenditures results in the following economic impact. This link would be useful as well, because it talks about some of the issues of Household Income Change vs. Household Spending Pattern and some modifications you may want to do before running disposable income through the Model. http://implan.com/index.php?option=com_content&view=article&id=169&Itemid=1706 Thanks!
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