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Economic impacts of public university

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mrhaynes

Hello,

I am modeling the economic impacts of a public university. I have been reading the instructions on your website regarding the two different methods: bill of goods versus industry spending pattern. We have detailed budget information for the university, so either method seems like it would be possible. Is there a reason why one is preferred over the other? 

 

Thanks!

 

 

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    Candi Clouse, PhD

    Hello there!

    Both of the options you mentioned, using the Industry Spending Pattern + Labor Income and the Bill of Goods + Labor Income are correct and it really depends on the available data and choice of each user.

    The recommended methodology actually utilizes the Event Type Industry Impact Analysis (Detailed), launched in the fall of 2021. This Event allows you to enter any piece of the Leontief Production Function. Check out this article for a walk through on a fictitious public college: Analyzing a Public College using Industry Impact Analysis (Detailed).

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    mrhaynes

    Thanks! I am still using IMPLAN pro, and I understand the method you are suggesting is only available in the online version. I would like to explore the online tool a bit more, but I'm not sure if I want to do a full blown analysis in it yet. So for this study, I will probably stick with the Industry Spending Pattern or Bill of Goods method. You mentioned it depends on the available data. Is there data that would lend itself to one method or the other? 

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    Candi Clouse, PhD

    Hello again!

    First off, I recommend checking out our newest version of IMPLAN at app.implan.com so you can use this new event type that will make this process far easier.

    With that being said, if you are given limited information from the university, the Industry Spending Pattern + Labor Income Event will be easier. If they give you a detailed budget with spending by line item, then you might want to use the Bill of Goods + Labor Income process.

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    mrhaynes

    Hello again,

    Thank you for the assistance. I will check out the IMPLAN online version.

    I have a detailed budget with spending by line item, so I am using the bill of goods method. For that method, am I correct in assuming that I should change all of the LPP values to the SAM model value? We have little information on where the purchases are taking place, just what's being spent.

     

    Thanks again,

    Monica

     

     

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    Michael Nealy

    Hello Monica,

    You are correct! In the event that you do not know exactly what percentage of these commodities are purchased locally you can let IMPLAN determine what portion of the production may affect the local Region by selecting the SAM values for the LPP. Utilizing the SAM value sets the Local Purchase Percentage to the Regional Purchasing Coefficient (RPC) for the given Commodity. Remember that the RPC is the proportion of the total demand for a Commodity by all users in the Study Area that is supplied by producers located within the Study Area. You can read more about those Local Purchase Percentages as well as Regional Purchase Coefficients here.

    Hope this helps!

    Michael Nealy

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