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<br />vector of final demands, the 1-0 model equations can be represented as: <br /> <br />(I-A)X = y <br />and the outputs necessary to satisfy intennediate and final demand may be solved for as: <br /> <br />x = (I-A)"'Y where (I-A)"' is known as the Leontiefinverse. <br /> <br />Given exogenous shocks to a local economy, changes in gross outputs required to satisfy changes <br />in final demands and/or resource availability are detennined. Through its multiplier impact <br />analysis, the 1-0 model is capable of generating estimates of the changes in output of given <br />commodities, changes in employment. and changes in income. <br /> <br />The primary database for the construction of the initial 1-0 models was the IMPLAN data.s For <br />the Colorado River study, the baseline matrices were constructed from 1982 databases. The <br />Virgin River study utilized 1990 databases. The original 528 IMPLAN sectors were aggregated <br />to 20 for the Colorado River study and 16 for the Virgin River study. This aggregation reduced <br />the dimensionality of the analysis to manageable levels and enabled the sectors that were affected <br />by direct impacts to be analyzed. <br /> <br />To update the Colorado River model to the 1989 baseline used for analysis, the Gross State <br />Product data from the Department of Commerce, Bureau of Economic Analysis (BEA) were <br />used to update final demand levels for each of the 20 sectors of the 1-0 model. These data are <br />available at the state level for the period from 1982 through 1989 for 73 sectors which can be <br />matched (via SIC codes) to the 20 sectors represented in the 1-0 models constructed for the <br />Colorado project. In this way, the economic activity reported in the 1982 IMPLAN data set was <br />updated to 1989 (in 1982$). The updated gross output levels were used to update the remaining <br /> <br />8 The IMPLAN modeling and database project were initially undertaken by the U.S. Forest Service to <br />provide regional 1-0 modeling capability (see u.s. Department of Agriculture 1993). The database management <br />and development and the software development are now conducted by the Minnesota IMPLAN Group (MIG). For <br />these projects, the use ofIMPLAN was confined to the construction of the input data sets to the 1-0 models that <br />were developed in the GAUSS programming language (see Brooke and Meeraus 1992). <br /> <br />IS <br />