OCR Text |
Show initial allocation of part of this amount of water to a particular sector ( to satisfy an anticipated increase in the final demand for the product), the marginal value coefficient in terms of income shows the complete increase in total income per unit of total additional water intake that is expected as a result of the allocative decision to support the expansion of a particular sector. The mar - ginal value coefficient in terms of employment shows the complete increase in total employment per unit increase in total additional water intake. In both cases, by " complete" we mean the combined direct plus indirect effects* The completeness of these coefficients could be further enlarged by closing the system with respect to the household and including, also, the induced effects on income, employment and output of the increase in household demand caused by the direct and indirect increase in household income * Table 4 below shows these marginal value coefficients. They are defined by: 39 ShoiAij ( 8) £ L = M 1 dW 39 SVHAiJ i- l and ( 9) 39 if^ oiA- ij dW " 39 SVHAij hi dN They are calculated by taking the ratio of ( 4) to ( 7) and ( 5) to ( 7). Perhaps a graphic representation of this last set of coefficients may help to clarify matters. In Chart 1, read employment ( in thousands of man- years) on the vertical axis, and read additional state- wide water intake ( in. billions of gallons) on the horizontal axis. The linear functions ( and shaded areas) 30 |