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i <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />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 Corners 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 1-0 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 />Figure 3-A-1 Sim <br />Producing <br />Numerical Example of an I-O Model <br />Purchasing Sectors Household Final Gross <br />Sectors 1 2 Consumption Demand Output <br /> 50 300 1000 <br />2 <br />i•:;it <br /> <br />00 <br /> <br />1300 <br /> <br />1900 <br /> <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 />16