| OCR Text |
Show to " d" where we see that output has increased by dX; for the direct effect and dXj for the indirect effect, both of these contributing to the increase in total income and employment. It should be clear, then, that if the " a" to " b" move corresponds to the initial increase in water to the sector ( namely, the amount " ac" on the graph), the further move from " b" to " d" corresponds to the additional demand for water " ce" due to the indirect or feedback effects* Thus, we ought to be able to develop a multiplier relationship between the total increase in water relative to the increase going initially to the sector to " start" the propagation process going. This we can, do. The total increase in water intake per dollar change in the j*-* 1 final demand item is: 39 ( 6) ^= 5vUA dDi W J Dividing ( 6) by V ^, and making the assumption that the direct change in output is equal to the change in demand, we obtain our water intake multiplier given by: 39 ( 7) g.=| vUAij/ Vlj. The values for ( 6) and ( 7) are given in column 1 ( Direct and Indirect Water Intake) and column 2 ( Water Multiplier) of Table 3. We come now to our third marginal value concept. It is the most inclusive general equilibrium type concept conceivable, except for extending the concept further by closing the input- output system. What this marginal value concept shows is best explained by a brief illustration. If 1,000 gallons of additional water intake is available to be used by the state economy, and if the economic propagation effects are supported by ah 29 |
