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<br />~ <br /> <br />value of input required from a sector per dollar's worth of output of the <br /> <br />purchasing sector. Consequently, the value of these coefficients will all be <br /> <br />less than one and their sum over all local inputs will also be less than one. <br /> <br />The difference between the sum of coefficients and one is made up by the <br /> <br />dollar value of inputs purchased from outside the Basin, so that each sector <br /> <br />is in an accounting balance: a do llar' s worth of output requires a do llar' s <br /> <br />f . 1 <br />worth 0 inputs. <br /> <br />The coefficients of this system are fixed; they do not change with the <br /> <br />level of sector output or time. The implicit assumption is made, therefore, <br /> <br />that the production processes employed by the sectors of the regions are <br /> <br />linear and homogeneous of degree one and that they were estimated in long-run <br /> <br />technical and economic equilibrium. <br /> <br />The input-output coefficients of most of the economic sectors currently <br /> <br />established in the region were originally estimated from survey data in the <br /> <br />mid-sixties as part of the study by Udis et a1. <br /> <br />At that time, sets of <br /> <br />coe fficients for 1980 were estimated best upon assumptions of "best prac tice," <br /> <br />i.e., the technologically most advanced firms <br />In 1'18" <br />and the sec tor as a whole ^ was regarded as <br /> <br />advanced firms in the future. 2 In this <br /> <br />of each sector were identified, <br />.J.I,~... <br />resemb ling theA ..............'R+-l~ most <br /> <br />way, an attempt was made to <br /> <br />anticipate the technological change which would occur and thereby mitigate the <br /> <br />limitations imposed by the fixed coefficient system. <br /> <br />IFor a numerical example of this system within the context of the UCRB, <br />see Glenn E. Morris, Energy Development and the Upper Colorado River Basin, <br />LA-6271-MS, May 1978. <br /> <br />2Udis et a1., An Interindustry Analysis of the Colorado River Basin in <br />1960 with Projections to 1980 and 2010 (Boulder, Colorado: Bureau of Economic <br />Research, 1967), pp. 70-79. <br />