ROI Study / Retrospective Impact Analyses
Hello,
I want to put together an ROI study about economic development projects, their impact and the ROI of incentives and tax abatement.
This analysis would go back over 5 years worth of projects and I am trying to think about the best methodology to complete this project.
Some projects had impact analyses done at the time of the project and some may not; is it possible and reasonable to use a old set of data instead of the most recent one? Given the evolution of industries within an area, I would think that to be most accurate the impact analysis should be done for each year since the beginning of the project activity with the parameters of the project in that year. Right? So is there a way to use 2010 to 2015 data?
And how do you incorporate new jobs impact and capital investment impact? When creating a basic impact analysis of new jobs, does it usually take any type of capital investment into account? (I don't think it does)
Any idea, help or knowledge of a common practice is appreciated! Thank you!
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Hello, You are correct that if you are trying to get a view into the project when it started it is best to use the older data sets, but if you don't have them, you are able to deflate a more current data set. If using a more recent data year than when the impact occurred, it’s important to understand that the underlying economic relationships represent the year of that data set, and that the deflators simply change the value of the entered dollars or the estimated dollars associated with the Employment numbers (if that’s what your starting from). Another thing to keep in mind is that IMPLAN is not FTE employment, see this [url=http://implan.com/index.php?view=document&alias=4-536-fte-a-employment-compensation-conversion-table&category_slug=536&layout=default&option=com_docman&Itemid=1764]conversion sheet[/url]. Since appears that you don’t have access to the older data years, we want to inform you that any IMPLAN Online subscription contains data from 2010-current. Check out the [url=http://implan.com/index.php?option=com_payplans&view=plan&task=subscribe&group_id=9&Itemid=1736]quarterly subscription for Florida[/url]. Capital investments are not included in the basic spending patterns of the industries. Capital investments are modeled separately and considered one-time purchases. If the investments are related to construction, you can model with the appropriate construction Sector. If its equipment purchases, and its known what is purchased, you can select the producing sector for its values, and then margin it if you aren't sure if the equipment is made in FL or not, and run them in their own Activity. If you know there is capital investments occurring, but aren’t sure how they are specifically spent, you can look at the investment spending pattern templates found in Activity Options>Import>From Another Model>Find folder C:\Documents\MIG\Implan\Utilities>[url=http://implan.com/index.php?view=document&alias=27-invenstment-only-ffe-536-sector&category_slug=536&layout=default&option=com_docman&Itemid=1764]Investment Only 536 Sector[/url] or [url=http://implan.com/index.php?view=document&alias=7-investment-with-structures-536sector&category_slug=536&layout=default&option=com_docman&Itemid=1764]Investment with Structures 536 Sector[/url] Key reminders: [ul] [li]> Capital Expenditures aren't included in the spending pattern because they are not year over year purchases but one-time or as needed purchases.[/li] [li]> Just like construction, we typically recommend running and reporting impacts from these types of expenditures separately because they are one-time impacts, whereas operational impacts are considered year over year.[/li] [li]> Capital Expenditures should always be run with Local Purchase Percentage set to SAM Model Value, unless you know that the item purchased was produced in the Study Area. For smaller geographies even wholesale should likely have an LPP set to SAM.[/li] [li]> If you are in Pro, you can find the spending patterns by going to Activity Options> Import> From Another Model. Direct the file structure back to the IMPLAN User Data folder and then select Utilities and the InvestmentPatterns_for_BEAIndustry_MIG_Lib440.impbd for the 440 Sectoring scheme and 536 for the current which can be downloaded here: [url=http://implan.com/index.php?view=document&alias=7-investment-with-structures-536sector&category_slug=536&layout=default&option=com_docman&Itemid=1764]Investment with Structures 536 Sector[/url][/li] [/ul] Please us know if you have any further questions.
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