| OCR Text |
Show total change in household income per dollar change in the j" 1 final demand item is: < 3) ST'S"*^- Dividing ( 3) by h^ gives the standard Type I income multiplier, which then shows the increase in total income dY relative to a dollar increase in income dYz of the j1-" sector. ^ If ( 3) is divided by V*. we obtain the increase in total income relative to the initial increase in water intake to the fi1 sector. This is given by: ^ 39 < 4) w.- I^^ r In an analogous way, the marginal value in terms of employment is given by: 39 j I= I Therefore, ( 4) and ( 5) define our second marginal value product concept. These coefficients appear in columns 3 and 4 of Table 3. Following the same line of implication as shown before with our graph of the Leontief production function, the direct effect implies a pari passu move from " a" to " b" and the inclusion of the indirect effect implies a further move 13The implicit assumption, though rarely stated, is that the change in the final demand for the jtn item is equal to the direct change in the gross output of the fi1 sector. l^ The same implicit assumption is involved here as with the income multiplier » 27 |
