Modeling public university.

HI, Thank you for your post. The data that you choose to build your model on largely depends on the type of analysis you are trying to conduct. It is our experience that zip codes are usually too small to be a functional economy to see the spending as not everyone lives in the zip code they work. If you don't include these larger areas where people spend their money and live, you will have little to no Multiplier impact. Here is an article about the different trade methods: https://implan.com/index.php?option=com_content&view=article&id=793:implan-trade-options&catid=185:data-information In regards to your Sector selection, I recommend importing an institution spending pattern. There are two different Institution Spending Patterns you can use. The more general one is located at Activity Options>Import> Institutional Spending Pattern where you can find a State & Local Government Non-Education Spending Pattern. Alternatively if you want a spending pattern specific to colleges you can find that at Activity Options> Import> From Another Model. Direct the file structure back to the IMPLAN User Data folder and then select Utilities and the SpendingPatternsNoPayroll_for_Programs_by_SLGovt . Here you will find a spending pattern that is specific for public universities. Your total operational value will be entered as Activity Level. If your University, is the only one in the county, you may want to consider looking at the contribution of what the University offers on the local region, rather than the impact. The following link provides additional information on contribution analysis: https://implan.com/index.php?option=com_content&view=article&id=660:660&catid=253:KB33

Hi, thank you for replying. I was wondering if you can tell me which sector I need to choose, after importing the public education activity. And if I am going to do contribution analysis, what activity and sector am I supposed to use. Thank you for your time.

Hi. It you have imported the Institution Spending Pattern for public education than you don't need any additional Activities or Events as far as looking at the university's operations. To Model the impact of your university you would simply enter the total value of the university's operations into the Activity Level and create a Scenario for this Activity. The one important thing to remember here (this is assuming you are using the Institution Spending Pattern from the Activity Options>Import> Institutional Spending Pattern- that includes a Sector for State & Local Government payroll) is that the value of the payroll Sector is by definition a Direct Effect of the Universities operations, whereas the remaining reported Direct Effects represent the first-round expenditures of the university in your region. However, nowhere in the results is the original value of university operations included. You need to add this back in to account for it. We typically recommend doing this by talking about the university's operational expenses and payroll effects as separate from the remaining results displayed in the impact. However, if you desire to add them into a single table you can do so but you would want to move all of the impacts reported as 'Direct Effects' to Indirect Effects by summing them to the reported Indirect Effects for the Scenario. Your Direct Effect will be what the university itself reports for it's production levels. If you have information for Value Added, Employment and Labor Income you can use those values (please see the description below) if not the Employment, Labor Income and Value Added for the State & Local Government Education Sector can be used and you can supply the Output value from your Activity Level. If you are using the State & Local Government Education no-payroll spending pattern imported through Activity Options> Import> From Another Model you can use the State & Local Government Education Sector to estimate the effects of payroll. You will adjust the Activity Level you use for the spending pattern to reflect just the operational portion of the budget, less the estimated Value Added for the State & Local Government Education Sector. (This is a slightly larger number than just payroll, although very close to the payroll value). If you have your own values you want to use for payroll and Employment (and you using the spending pattern described in the first paragraph, you can delete the State & Local Government Education Event from the spending pattern use the Events Options> Change All> Normalize Events to rebalance the spending pattern to 1.00 and then treat the spending pattern and Activity for the State & Local Government Education as you would the non-payroll described in the second paragraph. As regards contribution, we apologize for our mistake there, contribution analysis only applies to private Sector because there are no feedback linkages for Institutions, so in your case you won't need to worry about modifying that analysis for contribution. If you are looking at doing any other aspects of the university's contribution, please let us know as there are a number of caveats to consider when looking at other university related activities. Here is an article to a public college case study: https://implan.com/index.php?option=com_content&view=article&id=670:670&catid=264:KB43.

Here is what I did, and please tell me if it would be appropriate to show the impact of a public university to the economy. I set up a new activity, and chose industry change. Then I chose new event. Then a chose sector 438 (employment and payroll only, state and local government education). Then I inserted the annual budget for the university in industry sales, and I also included the number of employees and ran the analysis. Would that be appropriate? I tried to do it the same way as you described, but the number of employees under direct effect comes up to 551, and the actual number of employees that the university has is 1238, I am just not sure what to do in this situation. And thank you so much for your help.

Hi Ahmad, The Industry Change Activity Type and selecting Sector 438 is exactly correct. You will need to however, adjust the value in Sector 438 to reflect only the Value Added portion because for this Activity: Value Added = Output. Due to the nature of this particular sector (438), this impact will only provide you with the Direct and Induced impacts. Because it will only give those two impact types, you now need to get the Indirect impact by running your Institution Spending Pattern (Activity Options>Import> Institutional Spending Pattern > State/Local Govt Education). Since this spending pattern also has Industry 438 or Commodity 3438 you will need to remove this event. If you scroll all the way to the end of the spending pattern in your event, then to the left of the event select the box and select Delete Event; this will remove this line item. Your Operational Value will be entered in Activity level however, since we are removing 438 you will need to take the coefficient value from Commodity 3438 and multiply that number by your operational value. The result will be the value to be entered into the Activity Level in your Spending Pattern. If you do not normalize, you will not need to adjust the value of operations for Activity Level since it will represent on the goods and services portion, thus behaving like an Industry Spending Pattern. Finally, once you have run each Activity Type through to analysis the final step is to add your Indirect impact from your spending pattern to the Industry Change Impact- as this just produced the Direct and Induced.