Calculate public transit contribution

Thank you for that! What is the difference if I use employee compensation event type for the employee compensation? Is there a double accounting issue if I do that?

If I use IIA event with the employee compensation in the advanced field, do I choose the "418 - Transit and ground passenger transportation" as the industry? There are many occupations in the public transit authority, such as engineers, administrators, bus drivers, etc.

Hello!

That is correct, if you run Employee Compensation as it's own Event in conjunction with the Output of the public transit the Induced effects will be overstated. As far as the correct Industry specification, Industry 418 is a private sector. You can view the NAICS codes associated with this IMPLAN Industry in the NAICS to IMPLAN Bridge (Download).

Another option here would be to use the administrative government Industry 532 - Local government passenger transit. However, I would note that at the 2021 US level these Industries have vastly different production functions:

The best Industry to choose here would that which most accurately reflects the production makeup of the activity you are modeling. 

Best,

Michael Nealy

Thank you! What do you mean by "make sure to filter your Results for just the IIA Event or we will be overstating the impact by a small figure". How do I filter my results?

You mentioned to use IIA event type to fully customize the event. Since I don't have all the data, can I use the Industry Output event type? If I do so, should I use the Industry Contribution Analysis for each one and set $1 to prevent feedback linkage as well?

For my project, I'm using the expenses of the public transit authority to calculate its contribution. If I use Employee Compensation event type for the employee compensation, and Industry Output event type for all the other expenses, such as wholesale of petroleum, professional services, I assume there's no double accounting, correct? since those expense don't overlap. Also, do I need to add an Industry Contribution Analysis event and set it for $1 for the Employee Compensation event?

Hello!

So whenever you are on the Results end on an IMPLAN analysis, you can segment Results by various filters; Dollar Year, Region, Impact, Group Name, Event Name, and Event Tag. When setting up the contribution analysis as I have described as above, you will be overstating the Direct Output by $1. In this example I ran $1M in Output in an IIA Event, with the $1 ICA Event: 

So we would need to apply an Event filter for just the IIA Event: 

To model all expenses of the transit authority in conjunction with an Industry Employee Compensation Event would in fact be overstating our Results. This is because IMPLAN will estimate the entirety of the Leontief Production Function for the impacted Industry based off of your Employee Compensation Value, or the production level necessary to support that much Employee Compensation (read more in our support article Explaining Event Types). I would re-iterate that the best approach for this analysis would be to model it as an Industry Impact Analysis Event Type. The operating expenditures you have noted are Intermediate Inputs for the transit authority, and would be reflected in the Intermediate Input Value for the IIA Event. You can edit which Commodities are purchased with these Intermediate Input dollars by making changes to the Spending Pattern within the IIA Event: 

By default, the Industry Spending Pattern for Industry 418 will include a lot of those operational expenses that you noted, wholesale petroleum, professional services, etc. 

This would again only be for the operation expenses, all capital purchases would indeed need to be modeled separately, as those are not classified as Intermediate Inputs. Within this IIA Event, you can enter every data point that you have available to you. In the case of you not having all of this data, any value left blank (Taxes on Production and Imports, Other Property Income, etc.) will be estimated by IMPLAN. I would also suggest that you if you know there are no Proprietors associated with this Industry production that you input a zero under Proprietor Employment and Proprietor Income. 

Hope this helps!

Michael Nealy

That really helps! Thank you for the explanation of the filter.

I will use IIA event type and put Industry 532 - Local government passenger transit as the Specification, and fill out the Spending Pattern with all the commodities that are intermediate inputs/operational cost, instead of filling out multiple Industry Output events and use the IMPLAN 546 Industry scheme for the operational cost. Is this correct? When I do that (IIA event type), does the Value for the IIA event include the employee compensation? I see in the Spending Pattern, it only asks for percentages, not the actual dollar amount. That's why I wonder if the Spending Pattern expenses are calculated based on the Value. The operational cost of the public transit authority includes the employee compensation and the other expenses, but since the employee compensation has its own field to fill out, I wonder what should be put in the Value field. 

Thank you for all your instructions!

I think I figured out how to use the IIA event after reading this article. https://support.implan.com/hc/en-us/articles/4409063559835-College-Analyzing-a-Public-College-using-Industry-Impact-Analysis-Detailed-, since public college and public transit authority are both public agencies and have similar spending patterns. but I still have the following questions:

1. I have all the spending data from the public transit authority. In the Spending Pattern, is it better to use the actual spending on each commodity instead of what the IMPAN system has?  If so, when I adjust the percentage of the commodities, should I use the SAM or the User Value? 

2. There is a line item in the spending, "paid to insurance company as insurance deductible" – these are then paid out by the insurance company to the other party in the accident. So the expense is ultimately to a private citizen. Should I choose 3444 Other insurance, or 3060 Maintained and repaired nonresidential structures?

Hello! 

1. If you have known spending data on each commodity, you should use those values instead of what IMPLAN specifies, as it would be more accurate to your impact. If you know the total spending and percentage of these purchases that will be local locality, it would be better to use the user value, as the SAM is an approximation based on the Industry averages. If you do not know the exact spending and the locality, it would be better to use the SAM value for the Event LPP.

2. To most accurately reflect what these dollars actually represent, this line item should be run through insurance commodity (3444).

Hope this helps!

Sean Rodriguez

Thank you!

There is a line item "event" in the expenditure, which is event services, including catering vendor, grand rental for tables and chairs. Should I use 511 All other food and drinking places, or 451 General and consumer goods rental except video tapes and discs?

Hello Feifei!

Industry 511 would capture the spending on catering services, while Industry 451 would more accurately reflect the table and chair rentals. I would suggest that you assume some sort of split between the two to parse this line item out.

Best,

Michael Nealy