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Why Should I "Normalize Events"?

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alhall
Hello, I am importing a spending pattern and was wondering under what circumstances it would be necessary to normalize events. My understanding is that I would want to normalize events if I know that my input value does not include payroll. Is that correct, or is there another reason why I would want to normalize events? Thank you! Andrew
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    IMPLAN Support
    Hello, An Industry Spending Patterns contain only Intermediate Expenditures, which means it is only one portion of Output. Output= Intermediate Expenditures +Value Added, therefore the Value Added component is not included in the spending pattern (Value Added = Employment Compensation + Proprietor Income + Other Property Type Income + Taxes on Production- so this is more than just not including income). Activity Level is used for your dollar value. If you are working with an Output value, you will not need to normalize. If you are not working with an Output value, but an Intermediate Expenditures value (also know as a goods and services budget), you will need to normalize. For additional information, please see [url=http://implan.com/index.php?option=com_content&view=article&id=373:basics-analysis-by-parts&catid=323&Itemid=1588]The Basics of Analysis By Parts[/url]. Please let us know if you have any additional questions. IMPLAN Support Team
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    alhall
    This is very helpful! Thanks again!
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