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Show In order to clarify the water multiplier and the ratios of direct and indirect effects per direct and indirect application of additional water intake, four examples have been worked through in Table 5. The selected sectors were deliberately chosen to illustrate the wide range of water multipliers. Assume in each case that 1 billion gallons of additional water intake is to be allocated-- part of it directly to the initiating sector and the balance indirectly to support the growth generated by the direct allocation. Dividing the 1 billion gallons by the water multiplier gives the amount that should be allocated directly to the initiating sector ( row 3). The balance is the necessary total indirect application ( row 4). The direct employment and direct income effects ( rows 5 and 6), resulting from the direct water allocation, are found by multiplying row 3 by the direct employment and water coefficients from Table 2. The ratios from Table 4 are copied over for rows 7 and 8. These ratios multiplied by the 1 billion gallons give the numbers in rows 9 and 10 which are, respectively, the total state - wide employment and income effects ( direct plus indirect). The difference between the numbers in row 9 and row 5 is the indirect employment resulting from the indirect water application to all sectors, as given in row 11. Similarly, numbers in row 10 and 6 give the indirect income tabulated in row 12. ^ Our third marginal value product of water concept reflects, therefore, not just the direct marginal value of water to a given sector, and not just the l^ The detailed allocation among all the industrial sectors of the indirect water intake and of the resulting indirect employment and income effects may be analyzed from the column coefficients given in Table 3 of [ 7] or in the Appendix of this paper. 34 |