I have data on federal employee compensation for specific projects and I am trying to determine the best way to model the impacts of these expenditures.
I have been playing around with using sector 535. When I set up the activity, I enter my employee compensation data into employee compensation - the model then estimates an industry sales value based on the entered employee compensation. This value ends up being the direct value added and output values in the results. For example, if I enter $1,000,000 for employee compensation in sector 535, industry sales are estimated to be $1,359,242. In the results, direct labor income is $1,000,000 and value added and output are $1,359,242.
My question is about the industry sales / value added / output value - I can't make sense of what it means and if it makes sense to include these additional dollars ($359,242) in the results. I found from information on your site that these dollars represent other property type income (OPTI). I'm unsure of if this makes sense to include in the impact estimates associated with these projects. By including this piece, I am actually making the modeled cost of the project expenditures greater than the project expenditure data I am using...Specifically, my concern is that if I use sector 535 to estimate the federal employment impacts, direct output often ends up being larger than the project cost, which doesn't make sense.
I am considering using sector 535 and then changing direct value added and direct output to $1,000,000 (removing the OPTI piece). Does this seem like a reasonable approach?
Thank you for your help!
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