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14 <br /> Aa The Economic Importance of Water in Kansas <br /> Three variables are provided to illustrate the economic importance of water in the current analysis. These <br /> are: <br /> • Gross State Product(GSP):this is synonymous with value added. It represents the dollar value of all <br /> goods and services produced for final demand in a state or county. It excludes the value of <br /> intermediate goods and services purchased as inputs to final production. It can also be defined as the <br /> sum of employee compensation (wages, salaries and benefits, including employer contributions to <br /> health insurance and retirement pensions),proprietor income,property income,and indirect business <br /> taxes. <br /> • Employment:this is a count of full-and part-time jobs. It includes both wage and salary workers,and <br /> the self-employed. In the current study, employment is measured in job years. A job year is <br /> equivalent to one person having a full-time job for exactly one year. <br /> • Labor Income: this includes all forms of employment income, including employee compensation <br /> (wages and benefits) and proprietor income.' <br /> Using a modified IMPLAN input-output model in conjunction with 10-year average BEA sector-specific <br /> growth estimates for the State of Kansas, economic impacts are estimated based on: <br /> • The reduced availability of water in Areas 1-5 in CY2062; <br /> • The non-substitutability of water to compensate for the loss; and <br /> • The non-adaptation of producers and consumers to reduced water availability. <br /> All results are provided for one full calendar year—namely,CY2062. <br /> All dollar amounts are expressed in current 2015 dollars (2015$). <br /> The estimates of economic importance presented in this study are based on the flow of dollars around <br /> the specific areas defined by GMD3 based on data availability, similar economic and water supply regions <br /> of Kansas. They do not take into account any transactions made with agents located outside the <br /> geographic boundaries of the study area-that is,when goods and services are purchased from individuals <br /> and firms located in other parts of Kansas,states and nations;or when residents and business pay federal <br /> taxes. These latter transactions are described as "leakages" in economic impact analyses, to reflect the <br /> fact that dollars are leaking out of the economy of the individual state or counties of study into the <br /> economies of other states or nations. One major determinant of the size of leakages in economic impact <br /> analyses is the size of the study area-the bigger the geographical area of study,the less the potential for <br /> leakages because less transactions take place with entities outside of the area analyzed. <br /> 'Labor income is also included in GSP. <br /> 6 <br /> Apparet Analytics 2015 <br />