Guide to Sector Mapping

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Burkett.huey@coloradocollege.edu

• January 21, 2016 21:35

I'm a bit confused about how to sector my production function, http://www.coopext.colostate.edu/ABM/2014%20Western%20Colorado%20Corn%20Silage.pdf. As you can see, 'Labor' is an expense that varies directly with output, which would suggest that I ought to map it to sector 19, Agricultural support services, but I would also imagine that a labor expense would be "Employee compensation" and value added. I'm wondering if you have any advice or guides to mapping a production function's expenses to IMPLAN's functions. Thank you so much, Burk

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  IMPLAN Support

  • January 26, 2016 14:22

  Hello, You can search sectors that might best fit with the Sector Search function found in the Help menu. We suggest sorting by NAICS and typing in single keywords at a time. In your sheet, the interest payments would be attributed to a financial Sector. In the 536 scheme, 433-466 are the financial Sectors. You would choose the Sector based on the one closest to the payment recipient type. When it comes to handling labor payments, they should be attributed to Employment Compensation. The basis behind this is the way that the accounting system is handled. In the equation Output = Intermediate Expenditures + Value Added, Output is Gross Revenues and thus includes expenditures on both Intermediate Expenditures (the year-over-year purchases that are absorbed in the production process) and the labor expenditures (which on many farms will also include Proprietor Income to the farmer). The Labor component can be added to the results at the end or run in the same Scenario, but because it is handled differently it requires a different Activity Type, the Labor Income Change. We suggest taking a look at the [url=http://implan.com/index.php?option=com_content&view=article&id=359&Itemid=1797]basics of Analysis By Parts[/url], and then following through an example of modeling an impact using the [url=http://www.implan.com/index.php?option=com_content&view=article&id=386&Itemid=1797]Analysis By Parts[/url] methodology. Best regards, IMPLAN Group Staff

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