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Chapter 3 Methodology of the Analysis <br />A. Input-Output Modeling <br />To evaluate the impacts associated with actions taken on behalf of the endangered Colorado <br />River fishes in the Four Comers Region, a regional input-output (I-O) model was constructed for <br />the 10-county region. The modeling methodology was described in detail in the Colorado River <br />Fishes Report (see Brookshire et al., 1993) and the reader is referred there for further details. A <br />brief summary follows. <br />The I-O method is straight forward: all sectors of the economy are tied together by virtue of <br />economic relations called "linkages" and the production of a good or service can be described by <br />a "recipe" with the ingredients being the outputs of the other sectors of the economy as well as <br />the primary inputs such as labor, capital, and other raw resources. A simplified example is <br />provided in Figure 3-A-1. <br />3-A-1 Sim listed Numerical Ezam le of an I-O Model <br />Producing Purchasing Sectors Household Final Gross <br />Sectors 1 2 Consum tion Demand Ou ut <br /> <br />1 <br />~~ .. v Jv; v ivi~.ipv:.it ~ v}: <br />~`~~` _ ~ `~ ,.,•. ~ <br />•E~.;\t\ \\`3~: •:,: M1\ ~ `t'~~:,~tti`:v::\+~,vv``kv:.,.• •~t`t':: <br />: <br />:v <br />" <br />: <br />~ <br />vv <br />~ <br />'h <br />v' <br />~' <br />• <br />' 50 300 1000 <br /> vv{ <br />. <br />vn4,l ti4?h~::\ <br />y.:.::., <br />. <br />i. <br />} <br />v <br />: <br />v, - ~ k; <br />} <br />:;v v <br />\'v}•,:•M1 4v^vv>.; •4.T, i'ii~:: V? ::ii~'-.vvQh~n\ivv.•tih:;.~~tii%•v.:\~._:`-v.•_v\'-v:E' <br />Qk... \\\ ~ ••vv~ly <br />~ ~~ <br />`'~}~ <br />= <br />~`~` <br /> <br />00 <br /> <br />1900 <br />2 ~~~~ <br />~, <br />~: <br />= 300 13 <br />Labor 300 500 50 150 1000 <br />Value Added 350 800 600 400 2150 <br />Total <br />Payments 1000 1900 1000 2150 6150 <br />In Figure 3-A-1, there are two sectors (1 and 2) in the economy. The four shaded elements in the <br />upper left comer of the table represent the inter-industry flows (the linkages) between the <br />16 <br />