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<br />~ <br /> <br />i I <br /> <br />linkage is modeled. <br /> <br />In regions like those of the UCRB (regions with small <br /> <br />final markets), this is probably quite an adequate description since the new <br /> <br />energy facilities will be exporting all or most of their production. <br /> <br />Adjustments <br /> <br />for relative <br /> <br />price changes were made in the "1980" <br /> <br />input-output coefficients in recognition that relative price changes generate <br /> <br />changes in input-output coefficients, even with physical input proportions <br /> <br />held constant. <br /> <br />In order for the model to be consistent, the relative prices <br /> <br />embodied in the coefficients must be the same as those embodied in the final <br /> <br />demand and total gross output measures used in the model. <br /> <br />Since these later <br /> <br />are measured in 1970 dollars in the current version of the UCRB Optimization <br /> <br />Model, the "1980" coefficients which. were originally measured in 1960 dollars <br /> <br />had to be transformed to the 1970 dollar standard. . This was accomplished by <br /> <br />constructing 1960 and 1970 price indices for each sector and pre and post <br /> <br />multiplying the input-output array in 1960 dollars by vectors of ratios of the <br />. d. 1 <br />In lees. <br /> <br />The regions of the UCRB were tied together economically by arrays of <br /> <br />interregional input-output coefficients. <br /> <br />These coefficients have the same <br /> <br />meaning as the regional coefficients except that the producing and purchasing <br /> <br />sectors are located in different regions of the UCRB. These coefficients are <br /> <br />based upon the aggregate trade flows among the regions as presented in Udis et <br /> <br />a1., and are transformed into coefficients as in Morris' An Optimization Model <br />2 <br /> <br />1 The technique employed here is the same as used in <br />Optimization Model ..., pp. 73-85, but the indices used were <br />based upon more detailed Department of Commerce price series. <br /> <br />Morris, An <br />recalculated <br /> <br />2Glenn E. Morris, An Optimization Model..., pp. 86-114. <br />