100%(2)2 out of 2 people found this document helpful
This preview shows page 10 - 12 out of 16 pages.
Share of shipyard revenue spent on materials for Washington (m) = 39.92% Standard deviation = 12.63% d.(3 points) Income earned during ferry construction, Y=F0*(1-m)*egl*t:The portion of revenue not spend spent on materials is income earned by workers and shipyard owners. Calculate the point estimate of this income in the baseline by multiplying the total cost of ferry construction in 2017 dollars with in with WSF requirements in place, F0, times the share of revenue earned as income, (1-m). This is the estimated income earned in 2017$. Inflate this value to 2021 dollars using the laborinflation index that you calculated in part 1.a. Report these values here. Income earned (2017$) = $134.11 million * (1-0.3992) = $80.57 million Average 1988-2016 growth rate for labor index = 3.15% Income earned (2021$) = $80.57 million * exp(0.0315*4) = $91.4 million e.(6 points) Share of income earned by shipyard workers, w:Subtracting the cost of materials, m, from shipyard revenue yields shipyard value added or the total income earned by shipyard workers and owners. Work income includes both payroll and fringe benefits. The 2012 Economic Census data includes both annual payroll and value added. A Bureau of Labor Statistics (BLS) news release found here gives the percent of employee compensation that is wages and salaries (i.e., payroll). Using the annual payroll figure from the Economic Census and the BLS percentage for wages and salaries, estimate total employee compensation in 2012 for Washington state. Then calculate the percent share of value added that represent the income earned by shipyard workers, w. Using the data from the Economic Census for all states that report both value added and annual payroll as well as the BLS percentage for wages and salaries, calculate the standard deviation of this percent share. You can also calculate the Share of income earned by shipyard owners as (1-w). Report all of your figures and calculations here. Share of income earned by Washington State shipyard workers (Data: Economic Census data for NAICS 336611 and BLS) Washington State Annual Payroll (000s) $223,654 Wages and salaries as a % of total compensation 68.30% Total Worker Compensation for Washington (000s) $327,458 Washington State Value added (000s) $566,376 Share of income earned by workers in Washington, w 57.82% Standard Deviation of w 11.25% Share of income earned by workers in Washington, (1-w) 42.18%
Cost-Benefit Analysis Fall 2017 Assignment #2 11 f.(3 points) Income earned by shipyard workers and income earned by shipyard owners, W=w*Y and O=(1-w)*Y:Calculate the income earned by shipyard workers and owners for ferry production by multiplying the respective worker and owner share times the income earned during ferry production. Report those values here. Income earned by shipyard workers = $91.4 million * 57.82% = $52.85 million Income earned by shipyard owners = $91.4 million * 42.18% = $38.55 million g.Share of shipyard workers and shipyard owners living in Washington State, r and k: For this type of state-level benefit-cost-analysis, we would want to count only the benefits and costs that accrue to Washington State residents, but finding precise data on the percent of workers and owners that are resident is difficult. For this exercise, we will simply assume these percentages.