| OCR Text |
Show we obtain the expected demand for water intake. A comparison with the base year ( 1963) of our model, gives the expected increase in demand for water intake. From these results, we should get some feeling for the location of the relative strength and scarcity of the state's future water needs among the industrial sectors of the state. Of course, all of our conjectures are based upon the many assumptions that had to be made to get some substantive results. As mentioned above, the analytical approach is a general equilibrium approach. We may be burdening the word " equilibrium" here. Some may argue that the data points used to construct the input- output table may not all be equilibrium points. This is quite true, for we do live in a dynamically adjusting system. At each point in time, ^ x ante economic intentions are not all balanced by ex post economic realities. Be this as it may, there is no question about the fact that using the input- output technique creates certain theoretical and operational problems* Other techniques are not without faults* Obviously, we must choose the estimator which, in general, we feel is best. This means, in effect, choosing a set of assumptions and conditions that is generally best as we see it. Our input- output model is based on the economic experience of the state for the year 1963. The trade- off for this cross- sectional sample is the complete ness of the model and, as pointed out before, its own internal logic and consistency. Because of the nature of an input- output model, all of the economic inter- dependencies and all of the interacting economic forces that characterize an economic system can be taken into account in the analysis. One problem, admittedly a shortcoming of the model, is its static nature. The effect of this characteristic is more likely to be present in the results of the second part of 5 |
