Induced impact

[b]Re-posting[/b]: Quick question on the induced impact: since the employee compensation includes fringe benefits, when estimating the induced impact, does the model rely on the entire employee compensation, or does it make some adjustment so that the induced impact is reflective of the wage/salary component of the employee compensation, not the fringe benefits? Thanks.

Hi! The Model actually makes a series of adjustments to reduce Labor Income values prior to applying them to the various Household Spending Patterns to create the Induced Effects. This slide demonstrates the step starting from the Direct Effect that an Industry Change goes through to create a final impact. The steps are the same for a Labor Income Change but the process just starts at the conversion from payroll rather than the entry of the sales value. http://implan.com/index.php?view=download&alias=262-impact-calculation-process&category_slug=version-three-files&option=com_docman&layout=table&Itemid=1480 Thanks!