INTRODUCTION:

The Institutional Spending Pattern Event Type represents a general spending distribution for measuring broad Institutional activity in your region. These include general spending for:

• Federal Government 
  • NonDefense
  • Defense
  • Investment
• State/Local Government 
  • NonEducation
  • Education
  • Investment
• Capital
• Inventory Additions/Deletions

Note that the Specifications for Capital and Inventory Additions/Deletions relate to all Industries, not only government and should rarely be used.

 

INSTITUTIONAL SPENDING PATTERN:

These general spending patterns are unique in that they describe both Intermediate Expenditures and Value Added within the same Spending Pattern. This results in these Spending Patterns producing ‘mixed results’; where the reported Direct Effects describe both what we would generally consider Direct Effects (income, Employment and Value Added) and the first-round Indirect Effects that arise from the government spending its budget. This mixing of the results requires some additional work on the part of the analyst to parse the results, or requires the analyst to divide the Spending Pattern into the traditional Spending Pattern prototype that includes only Intermediate Expenditures, and then create a separate Activity to account for the labor/payroll component using Analysis-by-Parts (ABP).

As an example, let’s say we want to use the Institutional Spending Pattern to model a public university.  This would fall under State/Local Government Education.

The Advanced Menu shows all of the Commodities and the LPP is set to SAM. This will model the university’s purchases of local commodities based on the rate in which each commodity is purchased locally in the Data Year.

Note also that the Sum of Event Values is 100%.  This means that every dollar Value entered will be spent across the Spending Pattern.

At the bottom of the Events list, note the two Sectors designed with an * and the wording ‘Employment and payroll’. These Sectors are special Sectors that have no associated spending pattern and are used to calculate the Employment value and Value Added associated to government activity.

At this point in the analysis, we have two options for proceeding.

Option 1

We can use the full value of our university annual operations in the Value field and run the impact.  No further edits are made as all of the spending of the institution is captured in the spending pattern.

It is important to remember that the reported Direct Effects are a mixture of the effects of the university itself and the first-round of Intermediate Expenditures in the region. This also explains why the reported Indirect Effects appear to be so low, and why the Employment, Labor Income, and Output reported for the Direct Effects do not match the numbers we put in on the impacts screen.

Now we pull out the Direct Effect of Sectors 532 and 534 (Employment and payroll) from our Output, Employment, Value Added tabs.

Output

Employment

Value Added

We can copy the Direct Effects for Sectors 532 and 534 into Excel and total them.  The template here will help you to follow along with the calculations. This gives us our true Direct Employment, Labor Income, and Value Added.

Next, update the results by subtracting the calculated Direct Effect from the original Direct Effect.

Finally, add the Direct Effect + Indirect Effect from the updated results together to create your Indirect Effect.  Then Add back your calculated Direct Effect and sum the table.

Note that when we do this, Value Added = Output. This occurs because these special ‘payroll only’ Sectors do not include any Intermediate Expenditures. We can now adjust the reported Direct Effects by removing these figures from the results and then reformatting the results by summing the Direct and Indirect lines together and moving this total to the Indirect line.  Next, we insert our Direct Value in the Direct line.

After all that work, note that the total from our original impact match the totals from our final results.  The difference lies in what is included in the Direct and Indirect Effects.

 

Option 2

The second option involves zeroing out the two payroll Sectors from the spending pattern before running the analysis. In the Advanced menu on the Impacts screen, click the trash to delete both 3532 and 3534 (Employment and payroll).  

After the payroll Sectors have been removed the spending pattern Sum of Event Values is only 15.16%. This indicates that by default the Intermediate Expenditures associated to State & Local Government Education activity make up only 15.16% of their total production value.

One advantage of removing the payroll Sectors is that we can easily, and predictably, change the assumption of the amount of spending that goes towards the purchase of goods and services for university operations to our known value. If we only have total operational value, and don’t have a budget and payroll value, we can certainly use this percentage to approximate the split between Intermediate Expenditures and Value Added and use known figures as our Value. However, if we know the goods and services budget, we can normalize the Spending Pattern so that we can use the budgetary figure as our Value.

Note that after we click Normalize, the Sum of Event Values is 100% again, thus indicating that every dollar in the Event Value will be spent on the spending pattern. We can now set the Value to the cost of goods and services for the university.

Now that the goods and services have been accounted for, we need to see the impacts of their payroll effects. We can do this by creating another Event for the payroll using Industry Employee Compensation and Sector 532 – Employment and payroll of state government education.  If we know the employment, we can add it to this Event under the Advanced menu.

We use the Industry Employee Compensation Event type (instead of a Labor Income Event) because it captures or estimates the additional Value Added element of the capital consumption. A Labor Income Change could also be used with the payroll value and an Employee Compensation Event, but you would need to solve for Value Added separately, which can be cumbersome.

Two Scenarios are used because this avoids having the ‘mixed’ set of results we saw in Option 1 above. From these two Scenarios we now get two sets of results. The first is the spending pattern results which describe the effects of our budgetary expenditures on the local economy. Again these results do not include our Direct Employment, Labor Income, Value Added or Output, but do reflect the Employment, Labor Income, Value Added and Output associated to the first-round of Intermediate Expenditures of the university in the local economy in the listed Direct Effects.  The second is the impact of the payroll and employment which show the impact of staff spending their income in the local economy. Our Results screen will default to showing both combined. If you want to look at the Results of only one of the impacts, click on Filters and choose the Event Name you wish to see. Filtering by the Institutional Spending Pattern will show the Direct Effects that should all be added to the existing Indirect Effect to produce the true Indirect Effect. From there you can simply add the results of the Industry Employee Compensation Event to the edited Institutional Spending Pattern results. All that is left is to populate the Direct Output with the combination of the 2 Event Values run in each Event. 

If you know all of the Direct Effects of your institution, we recommend using Option 2.  By removing the payroll Sectors and normalizing the Spending Pattern you have complete control over the ratios and how your values are applied.

Note that the two Scenarios will not produce the same results if you use a different ratio of Intermediate Expenditures to Output in Option 2. 

 

ADDITIONAL CONSIDERATIONS:

To include only state or local employees, you can use either method.  If you want to use the Option 1 which leaves the payroll Sectors in the Spending Pattern, you can sum the two coefficients for payroll Sectors together and use the new coefficient with the relevant Sector. Alternatively, you can use the Option 2 as described; removing the payroll Sectors from the spending pattern and then creating your new Event with the Sector that is appropriate for your known Employee Compensation. 

Value Added is greater than Employee Compensation, which might not make sense for a public institution.  While the majority of Value Added is Employee Compensation, there is a small additional value that these Sectors account for that describes the Institution’s capital consumption allowance.

 

EXAMPLES:

Editing Industry Spending Pattern Events

ABP: Analysis-by-Parts Using an Industry Spending Pattern Event with Labor Income Event(s)

College: Modeling Public College & University Impacts

Hospitals: Modeling Private Hospital Impacts with Analysis-by-Parts

INTRODUCTION:

Remember how IMPLAN Pro let you upload and download Activity Templates?  Well, now you can bring all of your IMPLAN Pro work into IMPLAN in just a few easy steps. You can also download a copy of the Event Template to construct multiple Events at once.  

What was once called the Activity Template is now called the Event Template, but the Excel document looks the same. Currently, IMPLAN allows you to upload Industry Change, Commodity Output, Labor Income Changes, and Household Spending Changes. We have several improvements and expansions planned for this template as we work to include things like Spending Patterns, Regional Definition, and more. As always, if you have ideas we would love to hear them here!

The Event Template is a very specific file, and each field must be filled out exactly as it is shown in the original template. It can be used to create Events outside of IMPLAN for import into the system. The sheet has one tab for each Activity Type, and the correct tab must be used in order for importing to be successful.

EXPORTING AN ACTIVITY TEMPLATE FROM IMPLAN PRO & UPLOADING IT TO IMPLAN:

STEP 1 – EXPORTING AN ACTIVITY TEMPLATE FROM IMPLAN PRO

1. Select the Activity you want to export from IMPLAN Pro.
2. Click Activity Options.
3. Click Export.
4. Click To Excel.
5. Save the Activity as an Excel file on your computer. Save the file in a place, and under a name, that will be easy for you to find and identify later.
6. If you’ve exported a Household Income Change or a Commodity Change: you will need to ensure that your Excel tab titles are changed to the following – Once the file is saved, find and open the file. For a Household Income Change, edit the Excel tab labeled “Household Income Change” and change it to “Household Spending Change”. For a Commodity Change, edit the Excel tab labeled “Commodity Change” and change it to “Commodity Output”.
7. For a Commodity Change, the Commodity Output tab must be the second tab in the Excel Workbook, so add an extra tab to the beginning of the workbook (it can be completely blank).  
8. Activities must be exported individually, so repeat these steps for all the Activities you need.

 

STEP 2 – UPLOADING IT TO IMPLAN

1. Ensure your Regions and all the Groups you will need for your analysis are set up first to minimize model running time.
2. Navigate to the IMPACTS screen in IMPLAN.
3. Click the Advanced Options icon at the top of the page, next to “Select All Events”. You will see two new options: Download Template and Upload Template
4. Click Upload Template.
5. Click Select template file.
6. Find the saved Excel file with your exported Activity from IMPLAN Pro.
7. Select the file and click Open.
8. The Type listed in black is the available Type for importing – this should match the Type of Activity you exported.
9. Check the checkbox next to the available item.
10. Click Save.
11. Your Event(s) will now be populated in the IMPACTS screen
12. Events will need to be dragged and dropped into the appropriate Groups – the import process will not automatically match Events to Groups, and therefore the import process will not assign any “Event Year” (now called “Dollar Year”) to the Events – this step must be done manually
13. Note Event types that are in orange text are not available 

IMPORTING A NEW EVENT TEMPLATE IN IMPLAN:

STEP 1 – DOWNLOAD THE BLANK EVENT TEMPLATE

1. Ensure your Regions and all the Groups you will need for your Analysis are set up first to minimize model running time
2.  

3. Open the downloaded “Activity Template.xls”
4. Select the tab(s) with the Type of Event(s) you’d like to import
   1. Industry Output, Employment, Employee Compensation and Proprietor Income Events can be entered in the ‘Industry Change’ tab
   2. Commodity Output Events can be entered in the ‘Commodity Output’ tab
   3. Labor Income Events can be entered in the ‘Labor Income Change’ tab
   4. Household Income Events can be entered in the ‘Household Spending Change’ tab
   5. The additional tabs are not yet available for importing into IMPLAN
5. Populate the selected tab(s) with the Event Input Values you’d like to use. “Event Value” corresponds to Output in the “Industry Change” tab. For information that you do not have, leave the values (cells) blank.
6. The Event Year will not be imported. “Event Year” is labeled “Dollar Year” in IMPLAN and must be defined in the tool within the Group(s).
7. Save the populated Template in a place and by a name that will be easy for you to find and identify later.

STEP 2 – IMPORT THE COMPLETED EVENT TEMPLATE

1. Ensure your Regions and all the Groups you will need for your Analysis are set up first to minimize model running time
2. Navigate back to the Impact Screen of IMPLAN
3. Click the Advanced Options icon at the top of the page next to “Select All Events”
4. Click “Upload Template”
5. Click “Select template file”
6. Find the saved Template Excel file 
7. Select the file and click “Open”
8. The Type(s) listed in black are the available Types for importing 
9. Check the checkbox next to the Type(s) you’d like to import 
10. Click “Save”
11. Your Event(s) will now be populated in the Impacts Screen
12. Events will need to be dragged and dropped into the appropriate Groups – the import process will not automatically match Events to Groups, and therefore the import process will not assign any “Event Year” (now called “Dollar Year”) to the Events – this step must be done manually
13. Note Event types that are in orange text are not available 

MARGINNING:

• Margins can be applied in the case of Industry and Commodity Events, where applicable
• If you’d like margins to be applied, populate the “Retail” column of the Template with “Yes”. This will choose “Total Revenue” (if the Sector or Commodity is marginable) within the Advanced Menu of the Event, applying Margins.
• Remember, not all Industries and Commodities are marginable. 
  • The only marginable industries are Retail and Wholesale sectors.  IMPLAN has adjusted the best practices of modeling commodity purchases with margins rather than industry purchases.  The only exception is for wholesale and retail industries which maintain their marginable status.
  • Now, when the item purchased is known, a Commodity Output Event should be modeled using the purchased item as the Specification and Margins can be applied if appropriate.
  • Commodities that can be purchased from a retailer are the marginnable Commodities. Find current margins 2017 COMMON (IMPLAN5) MARGINS (notice there is a different file for IMPLAN Pro). 

INDUSTRY CHANGE:

Sector: This field is required. Your Sector value should be 1-536 for data years 2013-present. 

Event Value: This field is optional.* This field is equivalent to Industry Output in the Event in IMPLAN and needs to be in the dollar value that is triggering the Event.  Do not use a dollar sign when you enter the dollar amount in this field as this could cause errors on import.

Employment: This field is optional.* If you know the Employment associated to your impact, you will want to enter it in this field. If you leave this field blank, IMPLAN will estimate the Employment value based on Output per Worker values for the selected Sector.

Employee Compensation: This field is optional.* If you know the value of Employment Compensation paid in your Event, you will enter that value here.  Again, do not use a dollar sign when you enter the dollar amount in this field as this could cause errors on import.

Proprietor Income: This field is optional.* If you know the value of Proprietor Income paid in your Event, you will enter that value here.  Do not use a dollar sign when you enter the dollar amount in this field as this could cause errors on import. If you know that no Proprietor Income is paid by your Event, enter “0” here.

*While each of these four fields is optional, at least one of these them (Event Value, Employment, Employment Compensation, or Proprietor Income) will require an entered value. IMPLAN will estimate the value of the remaining fields based on the value you enter into the template. If two or more fields contain information, IMPLAN will estimate the remaining values based on the entered Event Value.

Event Year: This field is will not be recognized by IMPLAN and can be left blank. A Dollar Year will need to be determined in the Group on the Impact screen and should reflect the value of the dollars or the year of the jobs you are entering into the other Event fields.

Retail: This field indicates to IMPLAN whether or not Margins should be applied to the Event value.  The capitalization of the word is important – ‘Yes’ is entered if you want Margins applied to your Event value. A retail selection must entered for every Event line.

Local Direct Purchase: By default this field is 100%, and you will not want to change this value unless:

• You are working with a sales value that doesn’t all occur within the Study Area (e.g. Big Box X did $80MM in sales this year in North Carolina, of which 18% was in my county (Event Value = 80MM, Local Direct Purchase = .18).
• You are using an Industry Change Activity type but are modeling budgetary spending (i.e. first round Indirect Expenditures).

COMMODITY OUTPUT: 

Sector: This field is required. Your Sector value should be 3001-3536 for data years 2013-present. 

Event Value: This field is equivalent to Industry Output in the Event in IMPLAN and needs to be in the dollar value that is triggering the Event.  Do not use a dollar sign when you enter the dollar amount in this field as this could cause errors on import.

Event Year: This field is will not be recognized by IMPLAN and can be left blank. A Dollar Year will need to be determined in the Group on the Impact screen and should reflect the value of the dollars or the year of the jobs you are entering into the other Event fields.

Retail: This field indicates to IMPLAN whether or not Margins should be applied to the Event value.  The capitalization of the word is important – ‘Yes’ is entered if you want Margins applied to your Event value. A retail selection must entered for every Event line.

Local Direct Purchase: By default this field is 100%, and you will not want to change this value unless you are working with a sales value that doesn’t all occur within the Study Area (e.g. Big Box X did $80MM in sales this year in North Carolina, of which 18% was in my county (Event Value = 80MM, Local Direct Purchase = .18).

LABOR INCOME CHANGE: 

Sector: This field is required.

• 5001 – Employment Compensation is selected if you are working with a value paid to wage and salary workers
• 6001 –  Proprietor Income is selected if your entered value represents payments to sole proprietors or business partners

Labor Income: This field is required. The dollar value paid to Employment Compensation or Proprietor Income should be entered.  Do not use a dollar sign when you enter the dollar amount in this field as this could cause errors on import.

Event Year: This field is will not be recognized by IMPLAN and can be left blank. A Dollar Year will need to be determined in the Group on the Impact screen and should reflect the value of the dollars entered into the Labor Income field. This will typically be the year of the labor payments.  

Local Direct Purchase: This field is required. By default this field is 100%, and you will not want to change this value unless you are working with an income value that wasn’t all paid within the Study Area (e.g. Big Box X paid $80MM in Employment Compensation this year in North Carolina, of which 18% was in my county (Event Value = 80MM, Local Direct Purchase = .18)).  This is different from commuting rates, which should be calculated outside of the Model.

HOUSEHOLD SPENDING CHANGE: 

Sector: This field is required. The following Household Sectors are available. Descriptions are provided here for guidance, but only the numbers (10001-10009) should be entered into the field.

10001 Households LT15k
10002 Households 15-30k
10003 Households 30-40k
10004 Households 40-50k
10005 Households 50-70k
10006 Households 70-100k
10007 Households 100-150k
10008 Households 150-200k
10009 Households 200k+

Household Expenditures: This field is required. The dollar value of Household Income should be entered.  Do not use a dollar sign when you enter the dollar amount in this field as this could cause errors on import. Household Income implies a value that includes income tax and savings but does not include payroll taxes of benefit values.

Event Year: This field is will not be recognized by IMPLAN and can be left blank. A Dollar Year will need to be determined in the Group on the Impact screen and should reflect the value of the dollars entered into the Household Income field. This will typically be the year of the Household Income.

Local Direct Purchase: This field is required. By default this field is 100%, and you will not want to change this value unless you are working with an income value that wasn’t all paid within the Study Area (e.g. Big Box X paid $80MM in dividends this year in North Carolina, of which 18% was in my county (Event Value = 80MM, Local Direct Purchase = .18).

SPENDING PATTERNS: 

Currently, spending patterns can’t be uploaded into IMPLAN.  We have several improvements and expansions planned for this template as we work to include things like Spending Patterns, Regional Definition, and more.  Stay tuned!

RELATED TOPICS:

Event Template Download

2013-2017 Common Margins and Deflators

Why can I not margin Sectors I once was able to apply margins to?

IMPLAN Pro Activity Template Information