Wage & Salary Income

Wage & Salary income includes base salary and/or wages, employee paid social insurance tax, bonuses, stock options, severance pay, profit distributions, and reimbursements for meals and lodging. It is a portion of Employee Compensation.

Location Quotient

Location quotients (LQ) compare the relative concentration in a specific area to the concentration in the U.S. They are mainly used for descriptive and comparative purposes. The formula is LQ = Local Concentration / National Concentration, or more specifically the formula for the Employment LQ is:

LQ ir = (xir/xr) / (xin/xn)

     where
     xir = employment of sector i in region r
     xr  = total employment in region r
     xin = employment of sector i in the reference region
     xn  = employment in the reference region

Typically, the reference region is the country in which region r resides, but it might also be a state or regional level. LQs can also be calculated using Output or Labor Income instead of Employment.

An LQ equal to 1 signifies that the local share is equal to the national share. An LQ of less than 1 means that the local share is less than the national share. An LQ of greater than 1 means the local share is greater than the national share and is typically an exporter or perhaps has a specialization in that Industry.

For more information, visit the BLS.

Intermediate Inputs

Goods and services that are used in the production process of other goods and services and are not sold in final-demand markets (BEA). Intermediate Inputs consist of purchases of non-durable goods and services such as energy, materials, and purchased services that are used for the production of other goods and services rather than for final consumption. They do not include any capital-account purchases nor do they include the inputs from the primary factors of production (capital and labor) that are components of value added.

These inputs are sometimes referred to as current-account expenditures. In IMPLAN, this was previously referred to as Intermediate Expenditures.

Gross Domestic Product (GDP)

The market value of the goods and services produced by labor and property located within the borders of the United States. Since 1991, GDP is the featured measure of U.S. production. (BEA)

In IMPLAN, Value Added is a measure of the contribution to GDP made by an individual producer, Industry, or Sector.

Regional GDP

Regional GDP is the market value of the goods and services produced by labor and property located within the borders of a particular region. It was formerly referred to as Gross Regional Product.

In IMPLAN, Value Added is a measure of the contribution to GDP made by an individual producer, Industry, or Sector made within that geography.

State GDP

State GDP is the market value of the goods and services produced by labor and property located within the borders of a particular state. It was formerly referred to as Gross State Product.

In IMPLAN, Value Added is a measure of the contribution to GDP made by an individual producer, Industry, or Sector made within that state.

Dollar Year

Dollar Year is the year represented by the values in your Event.  This is usually (but not always) the same as the year in which your event occurred or is expected to occur. 

On the Impacts screen, Dollar Year should be the year of the data you are inputting. 

On the Results screen, Dollar Year should be the year of which you want to report your results.

This should not be confused with the Data Year which is the year of the dataset that you are utilizing. 

 

Leakages

Estimated spending associated with the modeled Event(s) that does not affect the Region you’ve defined (according to the model). This typically refers to economic effects outside of the Region triggered by an Event inside the Region. Often used when talking about in-commuters, taxes, corporate profits, and imports. IMPLAN by default does not internalize institutions, as it is more conservative to assume government revenue may go to funding outside the region.

Value Chain

The process or activities by which commodities in the economy increase in value but do not change from the factory door to the final sale. It includes the Producer Value, Transportation Margin, Wholesale Margin, and Retail Margin.