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<br />,~ <br /> <br />Sector Total Gross Output <br /> <br />A more specific measure of economic activity is the sector total gross <br /> <br />output (TGo). This is defined as the total annual sales of an economic sector <br /> <br />(including corrections for inventory changes). Thus, sales to firms or house- <br /> <br />holds within the region, as well as sales for export (FD) are included in the <br /> <br />TOO measure. A sense of the relative importance of each sector, or groups of <br /> <br />sec tors, to the Basin economy can be ob tained by comparing TGOs. The reader <br /> <br />should be warned, however, that TGO measures may vary significantly with the <br /> <br />particular accounting system employed (see p. ). <br /> <br />Sector Shadow Values <br /> <br />The "shadow value" for a sector is a measure" of the change in Basin <br /> <br />income which would result from a unit change in the economic measure which <br /> <br />constrains a given sector's activity. In general, it is a measure of the <br /> <br />change in Basin income which would be generated by a unit change in the final <br /> <br />demand (measured in dollars) of a given sector. As such, it is sector <br /> <br />specific and measures the potential for general economic expansion or <br /> <br />contrac tion in response to the expansion or cantrac tion of a see tor I s final <br /> <br />demand. <br /> <br />Sector Income Multipliers <br /> <br />Another measure of the importance of a sector to the Basin economy is the <br /> <br />sector's "income multiplier." It is the ratio of the change in sll the Basin <br /> <br />income generated as a result of a unit change in the final demand of a sector, <br /> <br />to the direct income change. There are numerous wsys of calculating a <br /> <br />sector's income multiplier. In this report, a "type II" income multiplier is <br /> <br />employed: the direct income (own sector household payments), indirect income <br /> <br />(other sector household payments), and induced income (household payments <br />