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<br />@ <br /> <br /> A number of major modifications were made to the original system of <br />::> <br />:J1 "1980" input-output cae fficients for use in the UCRB Optimization Mode !. <br />tv <br />CD Among these changes were the addition of Strip-Mined Coal and Coal-Fired Steam <br /> <br />Electric Production for Export sectors in each of the regions, reorganization <br /> <br />of existing sectors in order to achieve cross-regional compatibility, the <br /> <br />addition of new energy technology sectors, endogenization of the household <br /> <br />sector, relative price adjustments in the input-output coefficients, and <br /> <br />construction of interregional trade tables. <br /> <br />Many of these modifications are <br /> <br />described in considerable detail in Morris' An Optimization Mode!.l Several <br /> <br />of these modifications are described below in order to clarify the nature and <br /> <br />limitations of the model. <br /> <br />Endogenization of the Household sector involves bringing the purchasing <br /> <br />and revenue (income) patterns of households into the model on the same basis <br /> <br />as any other of the model's sectors. As a result, the elements of household <br /> <br />consumption are not treated as components of final demand but as c<>mponents of <br /> <br />the flow of inputs and outputs which must be satisfied in order to meet a <br /> <br />particular bill of final demands. <br /> <br />The effects of Households' purchasing <br /> <br />stimulus are thus incorporated into the impacts measured by the model. <br /> <br />The addition of new energy technologies to the input-output structure <br /> <br />allows users of the model to project the economic impacts of the new energy <br /> <br />technology, including those impacts which result from interactions within the <br /> <br />local economy. <br /> <br />These interactions are circumscribed in the UCRB Optimization <br /> <br />Model in that the local economy provides inputs to these new energy sectors <br /> <br />but does not utilize their outputs; in other words, only the "backward" <br /> <br />lClenn E. Morris, An Optimization Model..., pp. 38-173. <br />