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Show opportunity marginal cost ( in terms of income foregone) of supplying water to the it* 1' use. Anticipating somewhat the discussion of the third section of this report, it might be helpful at this time to indicate the operational significance of the equations of ( 13)* All we have set out to generate in our study are estimates of the ( joint) marginal value of water in terms of income, MVPi. In other words, we have part of the left hand side of ( 13), namely: ( 14) MVPi^ yMCi + A. To judge the efficiency of the existing allocation of water, we would need information on the right side of ( 14)* In this study, however, we are not passing judgment on the existing allocation of water. We are, in the third section, estimating the effect in terms of income ( and also in terms of our second criterion-- employment) of different alternative uses of an expected future increase in water intake for the State of Utah. The MVP^ coefficients are used to obtain estimates of the effect. We do not consider the right hand side of ( 14), but if one can assume that for the additional amount of water being supplied by the water system the marginal costs ( MCj) are small, the results of our study form a complete analysis. If we cannot make that assumption, our results form a basis for a very reasonable first approximation of the relative net marginal value of different allocations of the additional supply of water intake expected by the State of Utah. Looking again at ( 6), ( 7) and ( 14), we want to transform these implicit forms into the algebra of input - output analysis « We ignore here the terms repre - senting the resource cost of supplying water. The transformation gives: 15 |