Sector 301 in Ohio

Comments

1 comment

  • Avatar
    IMPLAN Support
    Thank you for your post! Since the year of your data and the Year of the project or event will most likely be different, setting Event Year will deflate your $10MM to the year of the data you used to build your model. It will not be until you run your analysis that it will deflate your Output. However your Employee Compensation increases when you look at the ascending Event Years as due to inflation this value will increase each year. When you look at your results, you will be able to adjust the Dollar Year for View, which will allow you to view the dollar result values to a specific year. I recommend breaking out your Events into separate Activities, if you wish to view your result dollar values in specific years. Since you have different Event Years in the same Activity which will be analyzed in the same scenario you will not get the detailed results of looking at the impact in the Event Year you specified. When you view your results you will need to select a base Dollar Year for View and you will not get a detailed look into the dollar value of different year. It's in deflation, the Output Deflators are less than 1.0 which typically only happens when you go back in time behind the year of the data set. But computers are one of those different Sectors where the cost of production actually goes down, not up, over time, but the GDP deflators go up because payroll continues to increase over time. This unique situation happens with computer production and few Agricultural Sectors, where the sales value of product actually decreases over time. If you bought $10K of computers today you would have approximately 4 nice servers or 10-20 desktop laptop computers today. But 10 years ago, that $10K would have bought many fewer computers. 50 years ago, you would have probably been purchasing processing time for that amount on an institutions building-sized computer. However, the value of the dollar always goes down over time, as a result of inflation, so the cost of wages will continuall increase over time. To dig deeper into deflation please see this article: https://implan.com/index.php?view=download&alias=230-appendix-h&category_slug=version-three-files&option=com_docman&Itemid=1480 Thanks!
    0
    Comment actions Permalink

Please sign in to leave a comment.