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made up through the capital account as funds flow into the region or out of the region to balance the goods and services account. Several conditions must be met for an economy to be in equilibrium and are specified in the model closure conditions. Supply must equal demand in all markets (goods and factors), the external sector account must be in equilibrium (imports equal exports plus/minus capital account flows), and savings must equal investment. By Walras's Law one of these conditions is redundant. The current model omits the savings-equal-investment condition as the redundant closure condition. The government sector is pennitted to run a debt financed through borrowing. Additionally, the model also specifies some conditions as fixed in order to close the model. Capital is fixed by sector thus the model solves for labor movements in response to exogenous shocks. Labor is freely mobile across sectors, and the labor market clears when aggregate demand equals aggregate supply. These relationships assume that the direct impacts being evaluated are not large. The CGE model allows the analysis ofthe national economic efficiency effects of the actions taken under listing and the designated critical habitat. A measure of the change in producer surplus is computed directly in the CGE model as the change in rents earned in the producing sectors. Since capital is fixed in the short run, these rents represent producer surplus. Household consumption is computed as: c = (wC)/P , I I where Wi denotes the share spent on good I and C is total consumption, it is possible to construct cost-of-living indices that are first-order approximations of consumer surplus changes. 12 Two indices are commonly constructed for this purpose, the Laspeyres and the Paasche quantity indices. These are defined, respectively, as follows: (1992). 12 The following is adapted from Boadway and Bruce (1984,212-213) and is also discussed in Varian 20