Direct Expenditures less impact more

Hi 

This year 2020-21 we had less direct expenditures but still impact was more. How do we explain this.

Thank you,

Ranjana

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5 comments

  • Official comment

    Hello, 

    Would you mind sharing some more details about you analysis (and the analysis you are comparing it to) so I can attempt to replicate/interpret your results?

    Best,

    Michael Nealy

  • here are the two comparisons

    2019--2020

    2020-2021

     

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  • So again without knowing the explicit inputs, it is going to be difficult to know for sure why we are seeing increases in the results despite a reduction in direct expenditure values. I would note to make sure you are pulling both of these sets of results in the same Dollar Year to ensure we are making an apples to apples comparison.

    Are you utilizing the 2020 Data Year to run the '2020-2021' analysis? Because of the abnormalities in the US economy during that time period, there will be some weirdness evident when running an analysis with that data. Some of that weirdness is outlined in our 2020 Data Release Notes as well as Taxes: How the Pandemic Ruined My Tax Results

    Hope this helps,

    Michael Nealy

     

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  • Hi Michael, 

    So if you see only student spending expenditures increased and other expenditures (direct) inputs decreased ,so why we get higher for MSA and NY State.

     

    Thank you,

    Ranjana

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  • Ranjana,

    My colleague was able to give some great insight into what may be happening here, which could have to do with your Industry or Industries supply chain/trade flows within the rest of the MSA and the State. It could also be the result of running a mock MRIO analysis in place of an actual MRIO, which would create dramatically different economic effects that would not be related to trade flows as those are ignored in a mock MRIO. If you are in fact running a mock MRIO, I would suggest reading our support article Please Stop Using Mock MRIO that delves into why the results of such an analysis can have dramatically over or underestimated results that are not fundamentally sound or appropriate. 


    Have a nice weekend!

    Michael Nealy

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