WSP10107

• File Number: 8059
• Description: Section D General Studies-State Water Plan
• State: CO
• Date: 11/1/1969
• Author: DOIDeptEconDeptAgEng
• Title: State Water Plan Economic Base -- Economic Analysis of Water Use in Colorados Economy
• Water Supply Pro - Doc Type: Report/Study

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the agricultural sector will purchase $.40 of goods from the trade
sector. Similar computations are made for all the entries in Ta-
ble 1 and presented in Table 2.

TABLE 2. PURCHASES BY CONSUMING SECTORS FOR
EACH DOLLAR OF OtITPtIT PRODUCED
Producing Consuming Sectors
Sectors Water Trade Agric. House. Gov't. Exports
(Dollars)
Water .08 .02 .02 .01 .01 .36
Trade .30 . .16 .40 .51 .06 .01
.Agri cuI ture .02 .12 .09 .06 .20 .62
Households .20 .24 .:27 .03 .09 .01
Government .20 .00 .13 .01 .61 .00
Imports .20 .46 .09 .38 .03 .00
Total 1.00 1.00 1.00 1.00 1.00 1.00

I

The information in Table 2 can be used to predict the effect of
changes in the state's economy. For example, assume that export de-
mand for ,,;tgricul tural sector products increases from $340,000,000
(see Tablel) to $500,000,000. This ::ncrease may be a result of th~
agriculture sector's ability to sell its output at a lower price be-
'cause of water resource development policy. Also, this is clearly
an increase in final demand from a sector outside the state's economy
and represents "new" do llars.

Based on the information in Table 2 we can predict the purchases the
'agricultural sector will need to make to produce the $500,000,000 out-
put. For example, it will need to purchase $500,000,000 x '.40 =
$200,000,000 from the trade sector on the first round. The purchases
are given in Table 3.

,TABLE 3. FIRST ROUND PURCHASES BY THE AGRICULTURE SECTOR
TO PRODUCE $500,000,060 OtITPtIT

Government
Imports
Total

Consuming Sector
(Agri c'u 1 ture )

$ 10,000,000

200,000,000

45,000,000

135,000,000
,
65,000,000
45,000,000
$500,000,000

Produci.ng Sector

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Water
Trade
.Agriculture
Households