Depreciation/Amortization, Dividends

I am attempting to run a traditional impact analysis, analysis by parts, and a contribution analysis for El Paso Electric. Ultimately, I am trying to determine the economic impact El Paso Electric (the sole firm of electric generation, transmission, and distribution in my study area) has on El Paso and Dona Ana County.

Should I include depreciation/amortization and/or dividends paid in any of these 3 types of models? If so, how? 

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  • Official comment

    Hello Keighton,

    Thank you for your Community post. I understand that your question was solved over the phone but I am posting this response for others users that may have the same question. 

    For impact analysis and contribution analysis, you should include depreciation and dividends in the output number. 
    And for Analysis By Parts, we would omit depreciation/amortization if we are inputting intermediate expenditures as the activity level by normalizing the events. 

    Of course, if you choose not to normalize the ABP spending pattern and use output as the activity level, then you would include them there as well.

    Hope this helps! 



    IMPLAN Support

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