Cumulative impact

Hello, Always use the year of the dollar you are working with (set the Event Year). This applies the proper deflation to the year of the data in your model. It looks like you have Events across ~ 7 years but they are all reported in 2009 dollars. If this is the case the Event Year for each Event would be 2009. We suggest building a separate Activity for each dollar year, and respectively entering in the Events setting the appropriate Event Year. This way you can analyze each Event in its own individual Scenario, or add them into a single Scenario. The Dollar-year-for-view drop-down allows you to select the dollar year of the results. However, if you are only interested in the cumulative impact and you have no need to view individual year's impacts it is fine to build them as separate Events in a single Activity. Another reason we recommend building the Events in separate Activities, even if they are all already reported in the same dollar year, is that this way you can see the Employment estimates of each Event/Scenario. We presume that since all the values lie in the same Sector that you may be looking a one or a few businesses' production. It is important to note that if this is the same business or a couple of business production the Employment is not additive, so if you run the analysis as a single Activity and a single Event you will not want to use or as a single Scenario the Employment estimate will be overstated. This is most drastic, and best illustrated, in thinking on the Direct Effect. If in 2001 Business A sells $126K of product and supports 50 jobs and in year two Business A sells $250K and supports 98 jobs then the job total is 98 jobs not 98 + 50 because the original 50 jobs are already accounted for in the 98 (50 from 2001 + 48 in 2002). The software unfortunately, will not make this adjustment for you however, it will simply add the jobs, thus providing a highly inflated Employment number for a cumulative impact of a business over time. Again this same principle applies to the Indirect and Induced Effects. While the Labor Income, Value Added and Output are summative year over year the Labor Income dollars that support the Induced Employment will have the cumulative impacts of the Employment supported in 2001 and then those same jobs are supported in 2002 plus the jobs supported now by the spending of the additional 48 Direct jobs. So the supported Indirect Employment will also have that same cumulative job issue, the Indirect jobs supported by the 126K and the additional 124K from the second year. Let us know if you have any further questions.

Thank you for your response. It was very helpful. I have a further question. I understand that data (e.g. State data) changes from year to year. If therefore I build a single model with activities for each year, then how would the effect of changing state data be addressed. Thank you

Hi Shameem, Great follow up question and we apologize if our previous post was unclear. You are correct, you could build separate state models for the data years you are impacting if you have all the relevant data. This will allow you to see the changes from year to year, and would be different than just using the deflation to look at impacts year over year. Both ways are acceptable and using deflation is probably more common. However looking at IMPLAN data in a time series has some cautions: https://implan.com/index.php?option=com_content&view=article&id=650:650&catid=253:KB33. For an accumulative impact of all years you will need to export out your results to IMPLAN and add those results together. Keeping in mind the cautions from the original post about how you report those results (including the fact that if you dollar values are 2009 the Event Year value in each Model would still be 2009 in every Model, and you would need to have all the exported values in the same Dollar Year for View in order to sum them). Hopefully this helps --Implan Support Staff

Thank you very much. Appreciate your assistance and clarification