In testing the state models, we noticed a small methodological fix needed in industry to align expenses when calculating production shifting.
Currently Change in Passthrough Expenses as Share of Nonenergy Industry Output by ISIC Code uses a one year delayed version of Output by ISIC Code but a current year version of Nonenergy Industry Expenses Passed Through to Buyers of Producer ISIC Code with VAT or Sales Tax Removed. This causes an oscillation in certain policy scenarios because of the year misalignment.
To fix this, we need to create a one year delayed version of Nonenergy Industry Expenses Passed Through to Buyers of Producer ISIC Code with VAT or Sales Tax Removed and use this in the calculation for Change in Passthrough Expenses as Share of Nonenergy Industry Output by ISIC Code.
Flagging this for @jrissman since it's an easy fix and can be integrated into your 4.1 edits.
robbieorvis
commented
3 months ago
In testing the state models, we noticed a small methodological fix needed in industry to align expenses when calculating production shifting.
Currently Change in Passthrough Expenses as Share of Nonenergy Industry Output by ISIC Code uses a one year delayed version of Output by ISIC Code but a current year version of Nonenergy Industry Expenses Passed Through to Buyers of Producer ISIC Code with VAT or Sales Tax Removed. This causes an oscillation in certain policy scenarios because of the year misalignment.
To fix this, we need to create a one year delayed version of Nonenergy Industry Expenses Passed Through to Buyers of Producer ISIC Code with VAT or Sales Tax Removed and use this in the calculation for Change in Passthrough Expenses as Share of Nonenergy Industry Output by ISIC Code.
Flagging this for @jrissman since it's an easy fix and can be integrated into your 4.1 edits.