OCR Text |
Show to the direct, partial, immediate effects of a change in water policy. The former approach has its own internal logic and consistency built into it. Given the quality of the data with which we work, the validity of all of our results is in terms of these two internal characteristics of the input- output model. The essential problem considered in the first part of the study, summarized and somewhat refined in this paper, was this: If the economic growth of a particular industrial sector is supported by the allocation of additional water intake to that sector, what will be the total effect on state- wide household income and employment? To rephrase the question for clarity, what we ask is this: Assuming a water board has X amount of additional water intake to allocate over the state as a whole, if it uses part of this to support the expected economic expansion of a particular sector and the remaining part of it to supply the increased demand for water intake on the part of all those sectors whose output is directly and indirectly expanded as a result of the growth of the initiating sector, what then will be the effect on household income and employment? What we are asking for is the joint marginal value product in terms of income and employment of water intake in the context of a general equilibrium model, In the second part of the water study being presented here, we are concerned with the problem of estimating the increase in the amount of water intake demanded by each industrial sector and by the state as a whole as a result of the projected economic expansion of the state. The methodology involved here consists of constructing a profile of Utah's expected future final demand sector for the year 1975 ( as a tentative benchmark). Using the input- output model, we obtain the expected gross flows ( outputs) for 1975, and with the water coefficients 4 |