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<br />concept in measuring the indirect and direct benefits of a given <br /> <br />dollar's worth of expenditure. <br /> <br />The multiplier is implicitly discussed by the Water Resources <br /> <br />Council as a banefit to be included in the calculation of national <br /> <br />economic development and the beneficial effect on regional development. <br /> <br />The regional development account embraces several types <br />of beneficial effects, such as (a) increased regional income; <br />(b) increased regional employment; (c) population distribution; <br />(d) diversification of the regional economic base; and (e) <br />enhancement of environmental conditions of special regional <br />concern.5 <br /> <br />I <br />I <br /> <br />An increase in regional income is attained to the extent <br />that water resource investment, together with other comple- <br />mentary investments, increases output and provides additional <br />regional income flows that would otherwise occur in the <br />absence of the plan.6 <br /> <br /><~ <br />V <br />( <br /> <br />'.--.; <br /> <br />The Bureau of Reclamation states in their guidelines to project <br /> <br />planning that indirect irrigation benefits include increases in the <br /> <br />net income of persons other than water users, as a result of the <br /> <br /> <br />increased flow of agricultural products from the project.7 This <br /> <br />statement is essentially the same as the economist's multiplier <br /> <br />",~. <br /> <br />concept. <br /> <br />There are several kinds of multipliers that can be measured. <br /> <br /> <br />One concept deals with "input-output" multipliers. Input-output <br /> <br />multipliers are usually developed when one wants to know the impact <br /> <br />of spending on individual sectors of an economy. There are two types <br /> <br />of input-output multipliers. <br /> <br />Type I (simple) multipliers include the direct effects <br />of a particular change, plus the indirect effects of the <br />interactions of successive rounds of expenditures with all <br />other processing sectors. Type II (total) multipliers <br />include these direct and indirect effects, plus the indirect <br />effects of having the households enclosed in the model, so <br />that the changes in successive rounds of expenditures <br />resulting from changes in household incomes are reflected. <br />Thus, Type II multipliers will always be larger than the <br />corresponding Type I multiplier.8 <br /> <br />B <br />