University Impact Analysis
I am very new to IMPLAN and am working on an EIA for a university. I have three counties within the state that I am targeting for the analysis as these counties are within the area of immediate influence of the university. I have collected salary and wages information for employees residing in these counties along with all university expenditures to vendors in this area. For two of the three counties, I was able to import Sector 473 (jr. college, colleges and universities)spending patterns as an activity and normalize the data since I had exact expenditures for each county. After analysis, this resulted in zero direct effects where I could add my labor income (salary/wages/benefits), calculate value added and Output, limiting leakage. My third county says there isn't a sector 473 present in the county so all I can do is add sector 473 as an activity without normalizing the data to get the value added information. The results are very low. For example, the direct effects for labor income and output are significantly lower then my actual numbers. Do I add my actual numbers to direct effects results (labor income, value added and output)? I may be incorrect but I thought that the Direct Effect of Labor Income should equal my actual labor; the Direct Effect of value added was value added (calculated using ratios from the industry Balance Sheet and salary + expenditures) plus Labor Income; and Direct Effect of Output was Direct Effect of Value Added plus my direct output (vendor expenses in my case).
Hi Diana Thank you for your forum post. It sounds as if you are analyzing the impact of the University to the region. The method you are using, Analysis By Parts, is typically used when you are modifying the Spending Pattern or the coefficients in the Spending Pattern. This is typically when you have better information of the Industry's inputs than IMPLAN; allowing you to customize your analysis. From your post, it sounds as if you do have better expenditure data which is why you have chosen to customize the spending pattern. You will need to have an Intermediate Expenditure value to enter into the Activity level field to conduct the Industry Spending Pattern Portion of the analysis. In regards to the region that does not have the University Sector, you can still normalize your spending pattern value- Change All > Normalize. Normalize tells the software to spend all of the Industry Sales value entered in the Activity level. Then the other half of the Analysis By Parts is to conduce a Labor Income Change. When using an Industry Spending Pattern, the value entered in the Activity Level, can either be an Industry Sales value (University Operations) or budgetary expenditures (Intermediate Expenditures). When you normalize an Event, the value you want to have entered into the Activity Level is the budgetary expenditures value. To your Industry not being in the region, here are a couple of additional thoughts to note: 1. 473 represents private college operations. If you are looking at a public college that has campuses in the third region, this could be why you aren't seeing Sector 473 in that area. 2. If you are looking at public college operations you can use Sector 473 as a proxy, or the public college spending pattern. 3. If there are not campuses in all three regions, we'd appreciate knowing a little more about what you are modeling as there may be better methods for setting up the analysis that we could recommend. You should not have a Direct Labor Income value nor any Direct results until you do add back in your Direct values. However, you will be able to view your Direct Labor Income in the Factor Change Field, in the results screen on the far left side of the screen. Value Added= Labor Income, Taxes on Production and Imports and Other Property Type Income. I am not sure if you have the Employment value to add back into for your Direct; here are some additional thoughts to consider: 1. If you do need Direct Employment, you can estimate this by using an Industry Change Activity with your estimated Labor Income value as the proxy. This will generate a Direct Employment value. As a note, Employment in IMPLAN is a roll up of Full and Part time and seasonal workers. It is not a full time equivalence. 2. We also wanted to make sure that your wage and benefit value is what we consider to be Labor Income. As this is a fully loaded payroll to include benefits (e.g., health, retirement) and payroll taxes (both sides of social security, unemployment taxes, etc.) This can be you Direct Labor Income value. 3. If you are working with budgetary expenditures, but do not know the value of college operations (Output), you can use the value of the spending pattern before it is normalized as an estimate of the Intermediate Expenditures percentage of Output. This is found in the Sum of Events field and is represented as a coefficient. The coefficient expressed will be less than 1, as the other portion of this to equal 1 will represent the portion that goes to Value Added. From this you can increase the budgetary value to be Output. 4. You can calculate your Direct Value Added by the following: Output - Intermediate Expenditures (budget value used as Activity Level for the spending pattern) = Value Added to calculate Direct Value Added. If you are not customizing the spending pattern we recommend using an Industry Change Activity. We just want to make sure that you are using an Employment Compensation value rather than a wage and salary. Another type of analysis, if this is the only University in the region and if you are looking at current University operations, you may want to consider a Contribution analysis.
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