Construction Activities

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    IMPLAN Support
    Hello, There will be double counting because Sectors 58 and 56 buy from Sector 449 as part of their Intermediate Expenditures. You can look to see what your Sector 58 purchases from the region by navigating to Model Overview>Social Accounts>Balance Sheets - Industry Balance Sheet>Select your Sector>Click the Commodity Demand Tab. It sounds as if the way your breakout works, all of the associated architectural and engineering costs are accounted for in your known value. If this is the case, and you want to estimate that separately, then you have two choices: Analysis-by-Parts or using the values of spending pattern Gross Absorption to reduce the value of your Event for 449. With the Analysis-by-Parts methods, you would need to have or estimate (this can be done from the Model) the value of Labor Income for the two construction Sectors, since you would want to do Analysis-by-Parts to remove commodity 449 from both spending patterns. If you choose this technique, we suggest importing Sectors 56 and 58 as Industry Spending Patterns. This will allow you to remove the 3449 commodity Events from both spending patterns. You will then set the Activity Level to the total value of spending and you can run the resulting spending pattern. However, this will only model the rounds Intermediate Expenditures for each of these Sectors. In order to model the Labor Income portion, you must run the Labor Income Change for each of these Sectors, which means you will need to have an estimation of Employment Compensation and Proprietor Income (if appropriate). Both the Labor Income Change and the corresponding spending pattern can be run in the same Scenario. You will note that the results do not include any Direct Effects. You will thus need to add the total sales value (Activity Level) as Output, your Direct Employment and your Direct Labor Income and Value Added to each of these analyses. Bear with us, as we have not completely updated our [url=http://implan.com/index.php?option=com_content&view=article&id=359&Itemid=1797]Analysis By Parts[/url] article tailored to IMPLAN Online, but please fee free to take a look at it as the concepts are the same in both IMPLAN Online and IMPLAN Pro. Sector 449 you could run as a standard Industry Change and therefore you would not need to know any additional information, although you could add it in the Event fields if it's available to you. You would want to determine if all the 449 services were to firms in your Study Area (the Model geography). If not then you would want to set the LPP value to your known value or the SAM Model Value via the Event Options> Edit Event Properties>Set Local Purchase Percentage> SAM Model Value. In summing the results of this Industry Change to the Analysis-by-Parts analysis, you would want to consider how you define architectural and engineering as a Direct Effect or an Intermediate Expenditure. Most likely based on the desire to create the split this would be a Direct Effect and you could sum the final results of the 3 Scenarios together (or run all the Activities in 1 Scenario, but you would need to remember to still add in the Direct Effects from the Analysis-by-Parts component). Alternatively, you could determine how much of the spending would be accounted for in the spending patterns of Sectors 56 and 58 and reduce the value you enter into Sector 449 by the amounts that would be spent already as part of those two Sectors spending patterns. If you wanted to say that all the 449 spending was local, you'd reduce the value by the Regional Absorption coefficient, if you are working with the Model estimate you would use the Gross Absorption coefficient from the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab, when calculating your reduction of the 449 value. However if you do this, you will also need to adjust the value of Activity Level for the spending patterns to include their proportional split of the the 449 fees. Please let us know if you have additional questions. IMPLAN Group Staff
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