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Household Income event: gross income or spending?

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Miriam

Hi — for a Household Income event, does the value entered represent gross household income before taxes, or household spending? That is, does the model apply taxes and savings to the entered value before allocating it across commodities, or is the full value allocated?

I ran a $1M test in the 2024 Sacramento MSA model: a Household Income event returned $1,005,594 in total output, versus $980,845 for an Institutional Spending Pattern event on the same household group. That suggests the full value is allocated, but I'd like confirmation before documenting the methodology.

Thanks.

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    Lauren Benavidez-Brouk

    Hi Miriam,

    On household income events IMPLAN deducts the personal tax and savings from the amount you input in the event. The remaining portion is applied to that Household Income group's spending on goods and services.
    In the case of institutional spending pattern events applied to households, the amount you input is the actual expenditure amount, nothing is deducted and the amount is distributed on those household groups spending on goods and services. 

    In terms of reporting, household income events will only report induced effects generated for that additional injection of income, while in an institutional spending pattern, you will see all the effects. In the Institutional spending pattern, direct effects are generated from the industries households buys goods and services. If you want to model an injection of income in the household, I would suggest household income events, but if you want to model a change in demand of a household group I would go with institutional spending pattern.

    More information on these articles: 
    https://support.implan.com/hc/en-us/articles/360052212413-Household-Income-Events
    https://support.implan.com/hc/en-us/articles/360052214053-Institutional-Spending-Pattern-Events

    I hope this is helpful.

    Lauren

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