Their Water Interpretation Economy:

Their Water Interpretation Economy:

Technical

Bulletin

180

November

1968

Structure of the

Arizona Economy: and

Output Interrelationships

Their

Effects on

Water and Labor Requirements

Part

I. The

Input- Output Model and Its

Interpretation

Agricultural

Experiment

Station

The

University

Tucson,

of

Arizona

Arizona 85721

Foreword and

Acknowledgments

This is

Part

I of a report in a projected series of reports covering studies carried out under the general title of

"Water in Relation to Social and Economic

Growth in an Arid Environment."

This phase of the research is concerned with describing the overall structure of the Arizona economy and analyzing the multiplicative effects of each economic sector upon the other. Water and labor enter the analysis as two of the basic primary resources upon which this structure is built.

Part

I of this report is concerned principally with the description of an

Arizona input- output model and a discussion of its empirical implications.

Part

II is of primary interest to the research worker, and relates the multitude of details involved in the model's construction. Part II is in dittoed form, available upon request from the second author at the Department of

Agri- cultural

Economics, The University of

Arizona, Tucson. Subsequent reports will use this and other analyses to project the changing

Arizona economy in response to stimuli emanating from Arizona's water resource problems.

The results of this and forthcoming reports will be of interest not only to Arizonans but to members of other economies where water is in short supply.

The Rockefeller Foundation has supported this undertaking by providing generous financial assistance to make the overall study possible.

Members of the study group involved in various stages of this research, many of whom provided assistance on the present report, include

Dr.

M. M.

Kelso, Dr.

R. A.

Young, Mr.

Mack and

Dr. Harold

Kenneth

Hock, Dr. Douglas Jones, Mr. Lawrence

Stults in addition to the authors.

A number of people were consulted who provided advice, assistance and supplementary data for this study. They are

Dr. Thomas Stubblefield and the late

Mr.

James

Hill of the Department of

Agricultural

Economics, and Dr.

Leland

Burkhart of the Department of

Horticulture,

The University of

Arizona;

Mr. Harvey Tate, Mr.

Albert

Lane, and Dr. Robert

Dennis of the Arizona

Agricultural Extension Service, and

Mr.

Walter Pawson,

Economic Research

Service of the United States Department of

Agriculture. Personnel in various governmental agencies

(state and federal) and in private industry were helpful in supplying certain unpublished data necessary for the analysis. Mr.

Cal

Gurtner of the Employment Security

Commission of Arizona deserves particular notice. structure of the

Table of

Contents

Section Page

I.

II. USES OF INPUT -OUTPUT ANALYSIS

III. THE ARIZONA MODEL

Definitions and Classifications

The Flow Table

Technical

Coefficients

Interdependency

Coefficients

IV.

FOREWORD AND ACKNOWLEDGMENTS

THE PURPOSE OF THIS REPORT

Inside Front

Cover

OUTPUT IMPLICATIONS FOR ARIZONA

The Flow of Goods and Services

Direct Dependence Between Sectors

Direct and Indirect Dependence Between Arizona Sectors

2

3

3

4

7

8

9

9

9

12

12

V. WATER IN ARIZONA'S ECONOMY

Direct Water Coefficients

Direct Plus Indirect Water Requirements

Weighted Water Multipliers

Value Added

Per

Unit of

Water

Use

19

20

22

24

25

VI. LABOR IN ARIZONA'S ECONOMY

Direct Labor Coefficients

Direct Plus Indirect Labor Requirements

Weighted Employment Multipliers

26

27

28

31

List

of Tables

Table

1

2

Interindustry

Flows of Goods and Services by Industry of Origin and Destination, Arizona Economy,

1958

Percentage Distributions of Output,

1958

Page

10

11

3

4

5

6

7

8

9

10

11

12

Technical

Coefficients,

Arizona

Economy,

1958

Interdependency

Coefficients,

Arizona

Economy,

1958

Agriculture

Versus

Industry: Output

Effects Resulting from Changes in Final Demand

11

13

Adjusted Interdependency

Coefficients, Arizona

Economy,

1958

13

Ratios of

Indirect to

Direct Requirements, Arizona

Economy,

1958

13

14

Output Multiplier

Effects of a One

Dollar Change in

Final Demand for Products of Arizona Industries

16

Weighted Output Multipliers for Arizona Industries

18

Water

Use by Arizona Sectors,

1958 20

Direct Water

Coefficients for the Arizona

Economy by Sectors,

1958.

21

Water Multipliers for the Arizona

Economy

23

13

14

15

Weighted Water Multipliers for the Arizona

Economy

Value Added Per

Acre

-Foot of

Water

Rank of Each,

1958

Intake in Arizona Sectors and

Total Labor Requirements and Technical Labor

Coefficients for

Arizona

Sectors,

1958

24

26

27

16

17

18

Direct Plus Indirect

Man

-Hour Employment

Effects of a $1,000

Change in

Final

Demand, by Arizona Sectors

29

Direct Plus Indirect

Effects on

Number of

People Working for a

$1,000

Change in Final Demand, by Arizona Sectors

.

30

Direct Effects and Direct Plus Indirect Effects of a

10-

Percent Change in Final Demand on

Man -Hours Required, by Arizona Sectors

31

19

Direct Effects and Direct Plus Indirect Effects of a 10-

Percent

Change in Final Demand on

Number of Workers Employed, by

Arizona

Sectors

Foldout Table I of

Interindustry Flows of

Goods and Services

Origin and Destination, Arizona Economy,

1958 by

Industry

32

33

Foldout Table II Technical

Coefficients,

Arizona Economy,

1958

34

Foldout Table III Interdependency Coefficients,

Arizona

Economy,

1958 35

Foldout Table IV

Direct and Indirect Water Requirements, Arizona

Economy, 1958

Foldout Table

V

Direct and

Indirect Man -Hour Labor Requirements,

Arizona

Economy, 1958

36

37

I

Part

I. The Input- Output

Model and Its Interpretation

by Anilkumar

G.

Tijoriwala,

William

E.

Martin and

Leonard

G.

Bower

2

I. The

Purpose

of

This Report

involve easily-

The the sale that the cropping of products or services within pattern an economy quantitative insights into the operations

Pinal

County, at least product that observed direct in began the

Arizona partially effects. has reduced alfalfa production. This, in cycle. The changed during the last because of these increasing reduction in alfalfa acreage in Pinal County could turn, could input- output start during a given decrease the demand for change a that we of the five water chain economy costs, of trans- and enable one to investigate and analyze the multiplicative effects of any one industry upon any other.

For example, because of rising water costs due to declining water tables, years. In alfalfa acreage decreased from

32,000 acres in

1957 to

18,500 acres in

1963.

Such a reactions.

First, the farmers may demand fewer machines and implements because of services and products of industries supplying machinery manufacturers, and complete a circle within the economy and empirical estimates of these indirect and circular effects as well as the more purpose of this report is to present input -output tables for the State of Arizona, to discuss the necessary definitions involved, and to describe how the tables are read. In doing so, we will use examples of

Many research techniques are available problems. economy as an interrelated estimates technique formations so on.

-

The specific analytical tool involved is the "Leontief" system of input

- output accounts.'

An input- output table is essentially entry bookkeeping which give unit; these relationships. shows

This generally kncwn as do of those to not that study assist in the solution of economic specifically consider do, further the demand for the believe may be particular interest to the readers.

No attempt is made to a complete many allow only qualitative discusses and uses one

"interindustry analysis" that quantitative estimates of the interrelationships of a complete economy. economy period

Most approaches, however, during a given period of time. In other words, all transactions are arranged in a purchases from and just a system of sales to each research constructed, coefficients are derived by using simple mathematical model enables us to allows double sector of interpret majority of the vast quantity of interrelationships described in the tables an that square table indicating simultaneously the sectors making and the sectors receiving delivery. After this transactions flow table is

In some cases, effects of a single change in output (or demand) may obtain

-

Former Research Associate, Professor, and former Research Assistant, respectively,

Department of

Agricultural Economics, The

University of Arizona, Tucson.

Leontief, Wassily, The

New York: Oxford

Economic Research

Structure of the American Economy,

1919 -1939,

2nd Edition,

University

Press,

Project. Studies

1951;

York: Oxford University Press,

1959. in

Leontief, Wassily, and members of the

Structure of the American the

Harvard

Economy, New

there are simply too many interrelationships to handle in a narrative. The basic tables are essentially both the "Summary" and the

"Conclusions." Once the reader has mastered their use, he may not wish to pursue the essentially illustrative narrative in detail. However, the examples presented in the narrative may suggest other analyses to the reader that are relevant to their own interest.

II.

Uses of Input- Output

Analysis

The economic input- output technique is a powerful tool for analyzing changes in the economy in that it provides measurements of links between the demands of final markets and the outputs of each included industry. Consequently, it brings into focus the possible repercussions of changes in gross state (or national) product or its components on the output of each other industry. For example, for a given change in consumer expenditures, the nature and

The technique is a tool not only for state or national planners extent of changes, either direct or indirect or both, in other industries can easily be traced and identified. but also for individual business enterprises. If used properly, it enables an individual firm to evaluate its growth potential and to probe the implications of broad programs on the firm's possible sales.

Another application of the technique is the widening of an industry's knowledge of its customers and its customers' customers.

A firm is generally aware of the

However, it infrequently knows the products of its own customers. As these relationships are extended nature and type of customers who use its products and services. nature and type of customers who use the further, the firm's knowledge diminishes rapidly.

Since the input- output technique traces and identifies these innumerable sale and purchase relationships, an individual firm can often predict with fair accuracy the probable changes in the demand for its own products and services because of a change in the demand for products and services of other industries which are seemingly unrelated.

In addition, with the help of supplementary data, output requirements from each industry can, in turn, be translated into requirements for employ- ment and other primary resource needs.

Finally, with the help of auxiliary information on the geographic distribu- tion of industries, the technique makes possible the appraisal of regional implications of state or national programs.

Specific uses will come to mind while reading the description of our empirical model for Arizona?

Ill.

The

Arizona

Model

The basis of the Arizona input- output model is the transactions flow table.

See

Foldout Table

I.3

This table presents a

"picture" of the Arizona economy as of the year

1958.

All inputs to and outputs from each sector during this calendar year are recorded in this flow table.

This study was initiated in March,

1963.

Consequently,

1958 was the most recent year with adequate published data. Generally speaking, adequate data for any year are available so far as agriculture and mining are concerned. The critical data sources for the study were the Census of

Manufactures and

Census of Business,

While the latest available the flow data of being for this table

1958. are somewhat out of date in terms of absolute quantities, we believe they give a nearly correct picture of the economy in terms of relative flows and relative input structures.

2We reader adequate instruction ever, for believe exposition

" the description those who wish is in of the empirical input- output to make simple analyses additional explanation,

Miernyk, William H.,

The Elements

Arizona model should give of a good simplified

Input -Output of the lay his own. How- nonmathematical

Analysis, New York:

Random House,

1965. s

All foïdöüt tables are located follow their first reference. at the end of this report.'

Other tables immediately

.3

Definitions

and

Classifications

Sector Classifications aggregation of

In

Since order industries

However, statistics for the entire larger industrial minimum, we are homogeneous in both tions, such as (1) funds, to and keep aggregation that judgment had

(3) individual industries into tempered the study's emphasis agricultural the form sectors, to be

5 errors of to economy of agricultural a input structure because are presented of agriculture. processing sectors,

7 manufacturing and the "margin"

(wholesale and retail trade and transportation) industries, and

7 exogenous sectors consisting of scrap and from out of state.

An endogenous sector is defined as a sector whose and in one table, sectors was necessary. attempted to aggregate product type. other important considera- secondary data sources,

(2) available time and

The Arizona economy was divided into

26 endogenous sectors consisting of

10 mining sectors,

3 service sectors, one sector including all of by- products, maintenance and new construction, state and local government, federal government, households, and net imports output is related to its input structure through constant input- output coefficients.

For exogenous sectors, such as

"governments" or "households," output is not produced in direct proportion to its inputs.

Because of the nature of the data available for agricultural sectors, they were classified on a product rather than an enterprise basis. This type of classification leads to simplicity of valuing and

This these from advantage, joint costs however, must be adjustments are necessary. turns sectors. Nonetheless, secondary industry are reasonably manufacturing, and some transportation industries are classi- the Census and the sector classification of the

1958

Office of

Business Economics study?

Service, trade and other reasons. Mining is classified on a into arbitrarily a

Processing, fied on an establishment basis to conform to tion System used by the Bureau of distributing accessible and only the Standard Industrial Classifica-

Brief definitions of the commodities or industries each sector's disadvantage (conceptually at least) when the input structure of agricultural sectors is to be specified. Most of the inputs are joint inputs rather than input to only one particular crop. As such, divided between two or more producing data sources showing purchases of agriculture minor modification transportation industries are classified on an activity basis for the same product basis as is agriculture. that output. and compose each sector are given below. These descriptions should be analyses. A detailed description various sectors of the Arizona of the economy is presented adequate for in

Part II most definitions and classification of general of the this report.

Part II is of interest mostly to professional economic researchers.

4

Endogenous Sectors:

Sector

1

Meat Animals and

2

3

4

5

6

7

8

9

10 wool and mohair, manure

Poultry and Eggs eggs,

Food peas, and

-

Products other poultry and

Farm Dairy Products for meat, and manure

- eggs, and Feed Grains sorghums, sorghums

Cotton cotton

Vegetables

Citrus

- chickens,

- and hatcheries milk, cream, hay and pasture. beef, eggs, hogs, broilers, sheep and lambs, turkeys and turkey dairy animals slaughtered

- corn, wheat, oats, barley, grain potatoes, sweet potatoes, melons,

Fruits-

tangerines),

Forage Crops

Miscellaneous for forage, and sorghums for silage lint and strawberries, and

Fruits and Tree Nuts

- cotton seed all other vegetables. lemons, deciduous fruits, grapes, pecans, and "imported" fruits. dry beans, dry oranges (Valencias, navels, sweets, satsumas,

Agriculture and grapefruit.

- fruits, semitropical noncitrus legume and grass seeds, greenhouse and nursery products, on

-farm forest products, sugar beets, oil

United States Department

Current Business, Vol. 44.

No. of

11,

Commerce,

November

Office

1964. of Business Economics, Survey of

11

12

13

14

15

16

17

18

21

22

23

25

19

20

24

26 crops, miscellaneous crops, and mule power and horse and mule slaughter, services,

Grain Mill Products animals, cereal flour, wet

Meat and and poultry

Dairy Products milk, ice and fishing. corn milling.

Poultry cream and

Miscellaneous cluding

- flour preparations,

Canning, Preserving, and Freezing canning and preserving food, and

-

- crude petroleum and packing, butter, natural feeds for prepared prepared vegetables, fruit and vegetables. bread baked at single retail outlets, sugar, confectionery related products, beverages, shortening, table oils, etc., and other food preparations.

Chemicals and meat

Agricultural Processing

Fertilizers explosives, drugs paints and varnishes, fertilizers, animal and vegetable oils.

Petroleum products, coke and products, paving and roofing materials.

Fabricated Metals and Machinery chinery, electrical machinery, ing transportation equipment exclud- aircraft.

Aircraft and Parts

Primary

Metals foundries.

Other Manufacturing ture, paper products, printing and publishing, rubber products, leather products, clay and glass products, and miscellaneous manufactured products. amusement and

- ices, and medicines, soap and related products, steel, sale and retail trade.

Unallocated Services

- recreation chemicals, plastics, foundries and textiles,

Trade and Transportation

- tourist synthetic rubber, forgings, nonferrous logging, wood products, furni-

Mining-

copper, lead and zinc, other mining (metals), and nonmetallic

Utilities minerals. mixed and liquified petroleum gas; telephone and telegraph.

Selected Services personal services; research, development, and testing labora- repair, automobile services, and garages; except armature rewinding horse meats, concentrated fluid milk. canned seafood, cured electric light and power; tories; automobile miscellaneous

-

- meal, prepared natural products, gas,

-farm agricultural rice milling, blended and

Processing dressing plants. creamery repair

-

- aircraft dehydrated fruits and parts. hotels, motels, services, and repair shops and related services; motion pictures; and and storage, air transportation, pipeline transportation, whole-

- honey and beeswax,

- and and railroads, trucking, warehousing banking and

-

- cheese, bakery fabricated ma- natural, manufactured, courts and camps; finance; on fish, in- petroleum metals, insurance; shops real estate and rentals; miscellaneous business services; armature rewinding shops; repair shops not elsewhere classified, legal services; engineering and architectural services; accounting, auditing and bookkeeping services; medical and dental services, nonprofit institutions, including education; ordnance and accessories; radio and television broadcasting; federal govern- ment enterprises; state and local government enterprises; busi- ness travel, entertainment and gifts; office supplies; and water and sanitary services. This sector is termed "unallocated" because individual not be obtained. output totals for each of its components could

Exogenous

Sectors:

In contrast to the construction of the endogenous sectors where each has both an input column and an output row, the exogenous portion of the

Arizona model has

5 rows and

11 columns. The state and local government sector, federal government sector, households sectors, and gross private capital formation sector are all aggregated into one row termed "value added." These sectors, however, do appear as separate input columns. See

Foldout Table

I.

5

to

Sector

27 to which the using and nonmetal wastes was estimated without specifying particular commodities.

Sector

28 input- output net exports model, flows grain table, mill cleanings, or imports as the case and sweepings, state imports and exports might therefore, are net relationships across the

-

-

Scrap and By- Products: This are distributed the produced by the

26 endogenous sectors. These commodities are then distributed sector from commodities considered as

Net

With imports a

Imports commodities considered scrap and by- products in this study are manure, dairy cotton seed, cake and meal, animal oils, cotton output and domestic consumption of state line within that be. is

The essentially by- products and Net Exports: In need as brewers' order to a

"dummy" sector scrap or by- products grains, vegetable linters, etc.

In addition, the value of metal therefore, detailed import- export data needed. Such information, however, is by to be specified. type and value not available. construct a

Ideally,

Under these circumstances, the difference between a sector's gross domestic sector's products was assumed to be

- row. Some of of the main culls, state product are imports and exports in this any counterbalancing commodity the same aggregate sector are ignored. recorded as a net relationship and no information as to whether a particular industry uses domestically produced or imported inputs, a further assumption was necessary in order to scale the distribution of inputs from a sector down to domestically produced goods only.

It was assumed that each sector use of that imported a particular class of goods in proportion to its relative good.

For example, if agriculture used

5 percent, nonagricultural industry

75 percent, and final demand

20 percent of the total value of a partic- ular sector's products consumed within the state, these sectors divided the value of imports of the same products in the same proportions; namely,

5, 75, and

20 percent, respectively.

Conversely, available domestic output was distributed in the same proportions.

Technical coefficients of producing sectors express the amount of a domes- tically produced good required to produce one dollar's worth of a sector's output. Technical coefficients of imports into the the import sector express the value of all the sum of the net import row nor the sum of the net export column has any comparability to published trade data. Since imports and exports are recorded on a net required to produce one dollar's worth of a sector's output. All imports state are aggregated, and appear in the single net import row. Neither basis, the are not, of course, sums are functions equal of the particular aggregation used. They the difference being Arizona's balance of trade.

Sector

29

Maintenance Construction: Output includes the value work done on force account in of all addition to that done by construction contractors.

(Force account construction means construction work performed for an industry as by

Sector

30

-

New Construction: Output includes force account construction by contractors. Construction erection of immobile structures and utilities, together with those service facilities which become an integral included. part of is defined the structure. as

Oil the work as design well and well drilling is

Remaining Exogenous Sectors: Sectors

31 through

37 comprise the seven remaining exogenous (final demand) sectors of the Arizona model. They are as follows:

Sector

31

32

33

34

State and Local Government

Federal Government

Inventory

Addition

Inventory Depletion

35

36

37

Gross

Private Capital Formation

Farm Households

Other

Households

Sector

31 includes state, county, city, special districts, and school districts.

Inputs to this sector are the purchases of government from other sectors.

Sector

32 includes the activities of the federal government in Arizona.

Inputs are government purchases. Federal government purchases of

Arizona products could not be estimated except for sectors whose output is mainly consumed in the region where produced. For other sectors, federal government purchases were ignored and are thus included in the net export sector.

Sectors

33 and

34 are included in the model to reconcile current produc-

8_

tion with producing current consumption. All inventories are assumed to be specific data were assumed to be in

Sector

35 not available, Arizona's share the

Arizona's production of was included in of the inventory items such as of the sector was to United States production. held by the change was same proportion to United States inventory change as the model only as a purchasing sector. Capital machinery and new construction purchased by the private sectors the economy are considered as purchases by this sector.

Inputs to sector

36 include only home consumption of agricultural produc- tion; for example, crops and livestock consumed on vegetable gardens, and

Inputs to sector individuals. The sum urban poultry

37 of consumption expenditures," as production. are expenditures for farms where goods grown, and services by urban private estimated in the national income accounts of the Department of Commerce. corresponding row is

While there are

7 input entitled columns as described above, there is only one

"Value Added." "Value Added" for this purpose a sector's gross domestic outlay and the inputs from each of the sectors

1 through

30.

The components of this row includes local, state, and federal taxes; wages paid to labor; salaries; deprecia- tion; interest; and proprietors individuals before taxes profits.

In other words, and new capital investment. it is the return to

Definition of Output

Output is defined in detail for each sector of

Generally, however, the "gross domestic output" the economy of each sector that these are "producers' in is

Part

II. the total value to the producer of all goods and services produced within Arizona, including those goods and services which are both produced and consumed within the same sector. Note

" values rather than

"purchasers" values. Producers' value is the value of the product excluding marketing margins and transportation charges.

The

Flow

Table

Foldout

Table I summarizes the interindustry flows of goods and services within, to, and from Arizona in

1958 by sector of origin and destination. Each entry in this table shows the value of goods and services produced by the

Arizona sector listed at the left that were purchased by the Arizona sector listed at the top. Some examples will make this clear.

The Row Entries

The entries in each dollar amount of an row of

Foldout Table I list in producers' prices the

Arizona sector's output consumed by itself and each of the other sectors in the economy. For example (reading across the first row), sector

1, meat animals and products, sold

$29,278,000 worth of products to meat and poultry processing (column

12). None of the other endogenous sectors bought demand columns, is indicated, gross the products of sector

1.

Continuing across row

1 to the final it may be seen that

$560,000 worth of output was scrap or by- products (column 27),

$108,091,000 worth of output was exported out of state (column

28,5 and

$3,161,000 worth of output went into inventory addition (column 33). Since this is a livestock sector, a buildup of live animals part private of which were breeding stock and perhaps better capital formation (column 35). However, because assigned to of lack of adequate data, such a distinction could not be made.

Farm households

(column

36) consumed

$1,730,000 holds (column

37) consumed

$580,000 values of worth of meat animals while other house- worth of meat animals. These two represent the value of farm slaughter of meat animals.

This portion output did not pass through the market but was valued at the average price of meat animals sold. Most meat consumption goes to households through the meat and poultry processing sector (sector 12). The final column lists the s Since in the construction of the final flow table, all imports were redistributed to the consuming sectors before aggregating the sector, the "real" value of exports of a particular

S.44 sector may be different from the value shown in Foldout Table and individual distribution tables in by sector of origin and value of net exports or of net the report for value imports by subsectors. of

I. See

Table net imports

7

total gross domestic output analogous descriptions. of the sector

($143,384,000).

Other rows have

In case of rows where column sector may be assumed to be a

28

(net exports) is blank, that particular dairy products), net importer. Exceptions are sector and exogenous sectors

28 through

30

3

(farm and the "value added" row where no imports or exports were assigned.

The

The Arizona poultry

29).

The total "value added" mainly trucks and the farm share of auto- worth of manufactured products (row

21), mainly paper products, but also including small amounts of tires and tubes, and the products of

Column

Entries

Each column of

Foldout Table I column

2 as an purchased

$870,000 worth of products from itself (row 2).

This includes the value of eggs sold to hatcheries and used for on

-farm hatchings, as well as the value of chicks and poults sold to farmers from hatcheries. The poultry sector's purchases of unprocessed food and feed grains amounted to $1,442,000

(row

4)

.

Processed feeds, purchased from the grain mill products sector

(row

11) are estimated at

$2,974,000.

Other industry purchases by the poultry and egg sector includes

$7,000 worth of chemicals and fertilizers (row

16), mainly veterinary supplies;

$4,000 worth of metals and machinery (row 18), mobiles;

$26,000 illustration, it is presents a sector's input structure.

Using shown petroleum products (row the printing and publishing industries.

The poultry and egg sector also purchased

$62,000 worth of natural gas electricity and telephone utilities

(row

23). Services purchased amounted to

$12,000

(row

24) and

$117,000

(row

26). In addition,

(row 27). The aggregate tioned the sector also used

$163,000 worth of by- product feeds trade and transportation margin on the above

-men- inputs totaled

$3,000

(row

25)

.

All of these inputs were produced within

Arizona. The Arizona poultry industry, however, also imported products produced by domestic sectors,

2,

4, 11, 16, 17, 18, 21 and

23.

The aggregate value of imports of products of these sectors purchased by the poultry industry was $922,000

(row 28), most of which was processed feeds. industry spent

$21,000 on maintenance construction (row

(that is, that

17); outlays the poultry and on

$5,000 worth state and of local egg sector fabricated government and federal government services, wages, salaries, depreciation, interest, and proprietors' profits) for the poultry sector amounted to $1,490,000.

The last row, gross domestic outlay, is the total value of all inputs

($8,117,000) and is equal to the gross domestic output of the poultry and egg sector.

That is, the value of all inputs plus profits equals the total value of output. The outlays of the other sectors in

1958 may be similarly traced by examining their respective columns.

Technical

Coefficients

Foldout Table

II shows dollars of direct purchases of each sector from every other sector per dollar of output in

1958.

Since purchases per dollar of output is not a relevant concept for most final demand sectors, columns

27 through

37 are excluded from the table. Exogenous rows

27 through

30 and the "value added" row are included, although they are not usually considered to be stable proportions of output over time, to complete the statistical descrip- tion of

1958 purchases.

All entries in this table were calculated directly from

Foldout Table I.

For example, domestically grown grains

($3,276,000) purchased by the meat animals and products sector (row

4, column

1 in Foldout

Table I) divided by sector ($143,384,000, shown in the equals

.022848

Entries in other rows (including exogenous rows) were obtained in the same manner. the gross domestic output of the meat animal and products last column of row

1 in

Foldout Table I) dollars (the entry in row

4, column

1 of

Foldout Table

II)

Each entry in Foldout Table II shows the value of goods and services required from the row sector per dollar of output by the column sector. For example, for each dollar of output produced by the meat animals and products sector (column 1), the following amounts of domestically produced goods were directly required from endogenous sectors:

2.2848 cents of unprocessed grains

(row

4);

16.2794 cents of forage crops (row 9);

0.4450 cents of miscel- laneous agricultural products (row

10);

1.1047 cents of grain mill products

8

(row 11);

0.0251 cents of chemicals and fertilizers (row

16); petroleum products (row 17);

(row 18);

0.0014 cents of

0.0607 cents of

0.0042 cents of fabricated metals and machinery factured products;

0.5663 primary cents of metals (row 20); utilities (row 23);

0.0384

0.2190 cents cents of of manu- services;

1.2379 cents of

3.5220

In cents

1958, worth of trade and transportation selected margins (row 25); and products from the unallocated services sector (row 26). of output, also required the in of cents. The following amounts the model:

0.9227 imports into Arizona (row 28); and

For each dollar total of of cents output the of of of products from sectors considered exogenous scrap and by- products (row 27); sector

1, input column

0.3487 is cents equal of to one provide similar information for the remaining sectors.

49.2342 the "value added" amounted to cents maintenance construction.

23.7056 dollar. Other columns

Interdependency Coefficients

Foldout Table III, the from Foldout Table models

Briefly, form

This also final

26

II as matrix of interdependency described in most coefficients, standard works on was computed input -output the

26 rows and columns of

Foldout Table II were used to equations which were matrix solved simultaneously by use not only summarizes the direct relationships between sectors but coefficient shows and indirect requirements for products of the row sector per dollar of delivery to final demand of products of the column sector. Thus, a dollar's worth of final demand for meat animals and products (sector

1) is associated with outputs of Arizona

(row 26). The direct and indirect requirements for internal flows);

0.0075 cents from farm dairy products (row

3)

;

2.6954 cents from food and feed grains (row

4)

;

16.3327 cents from forage crops

(row

9)

; and so on.

Very small or no industries amounting to

1.000085 demand and

0.0085 cents worth of generated outputs are generated in the other dollars from itself (one dollar for agricultural sectors. column

1, a one

-dollar delivery to final demand is associated with

1.1513 cents of grain mill products (row

11)

; and

5.5670 cents of unallocated services trade and of a the direct

Further down transportation margins amount to

1.6465 cents (row

25).

The remaining columns in the table show similar data.

IV. Output Implications for

Arizona

Section

III provides a brief description of how to read the three basic input- output tables (Foldout Tables

I,

II and some of the more important

III).

This section summarizes presents some supplementary tables where the model has been the types of information that relationships described in these basic tables and can be generated. further aggregated.

No attempt is made to include all of the possible analyses can be developed from the basic model. Instead, this section is that illustrative of

The

Flow

of

Goods and

Services

In Table

I, the

26 endogenous sectors of the Arizona model (as presented in

Foldout Table I) have been of gross output of the sector named at the left named at the top. further aggregated into six sectors consisting livestock, (2) crops, (3) agricultural processing, (4) mining, (5) services and utilities, and (6) trade of manufacturing

(1) and and transportation. Thus, the ten agricultural sectors have been aggregated into two sectors, the five food processing sectors into one sector, and the six manufacturing and mining sectors into one sector.

Table

2 summarizes the distribution of dollar flows shown in Table

1, in percentage terms. The entries in Table

2, reading across, indicate the percent distributed among the sectors

6

For examples see: Isard, Walter, Methods to Regional Science, New York: The Technology

1960;

Martin, William E., and Harold

O.

Carter,

A

California phasizing Agriculture, Parts

1 and

Foundation Research Report

250,

2,

California

February

Interindustry Analysis Em-

Agricultural Experiment Station, Giannini

1962; of

Regional Analysis:

Press, and John

Wiley and

Sons, Inc.,

Also,

An

Miernyk, William

Introduction

H., op. cit.

9

lo

;nd;np a;uIs is;oa ptistuaa

IttuI3 al;sautoQ agusgD

Rao

;uaAUI s;aodsg ;aN s

;anpoad

-Ag putt do.3g o uot;9;1OdBUBay putt army

:

WRIIIlf Pus

2Upgpt Pus

8ulan;as;nusy{I

,n tn ro oo w

"

Ñ4tm-rn~M

IA

tO

..

.i

CO1 q

.r

W in

Ó tii co

C

CV uaom..o

.-C

M t t7 Ñ

C'i CA

W W

Cli

W ó t0

C+'! .Ì

CO

W

Ñ

WM

W W

W

Ñ

A

A

C-

W

Á

N

ÿ ro

Ú a t.. tn H

COCO

.-,

N

H

Od

Tg) t f

Cgq iNtnn tpO

0!

O

M

V-L0-

.NJ

Ñ Ñ

.r m

5)5 t~D

P pp

1 s-s

W

CO

á pMp, dC

CV itiÑÓU;

á

ti ttin t<l. tDMeN

Çut

2[Mi

01

W

~

W

W M ti

Á5

ß uv b

EN

NA

7-.

.-N. y¡O

F.

CW

C'9tO n

SN.i?..;

e

CV ti

.t

CO

Ó ter

-

Mp

W

CO CO tO

VM

VltOaO

N2 tÓ

In

N1

P

.1

1.4

Ó

1tN

Ñ

.i rt

C

M ar.tiO

V,F

N.O.2

t0-

m

W el ti

óN d

á

W

..Nt mr: m f0

N.-2

C%ieN to o-

4

02 tn

Ht-

.r" tH

M

Ch.+ tr t+i

O

H ti

M W

S. n

N

M

W .-t t!) tn-NtO ttO

wr

.-C

II w

.o ro

F g5

Óo hOW

N

N

Gro p h000

7O ? g

LIZ o

00 gR

R

4,

,,,ÚH

V2~O-2.ÑN ro

0'4444446

ÿ

.C

N

.

A

.C6 ai

0

.0 i

N

0 aui

0

++

ái

0

.A g p

,ovvvv

u o a o u

ú

û d

WF44444fa

Table 2. Percentage

Distributions of

Output,

1958

Percentage of

Total Distribution of

Output to:

Producing

Sectors

Livestock

Crops

Agricultural Processing

Manufacturing and

Mining

Services and Utilities

Trade and Transportation

Scrap and

By- products

Construction

Value Added

Agriculture Agricultural

Processing b

9 b

10

1

18

2

4

2

32

2

7

14 b

2

1

1

2

Other

Industry

18

69

16

61

0

1

5

44

32

Net

Exports

45

46

0

0

3

4

0

0

0

Domestic

Total

Final Demand

22

33

86

51

62

76

8

84

27

100

100

100

100

100

100

100

100

100 s b

Including scrap and by- products and inventory change.

Less than

1.0 percent.

For example, the livestock sector sold about

33 percent of its output to the endogenous sectors, mostly to percent of its output was the agricultural processing industries. Forty exported out of state, while

22

-five percent went directly to domestic final demand sectors, primarily to consumers. The comparable figures for the crop sectors are

21, 46, and

33 percent, respectively.

While Arizona is a deficit producer of products of the agricultural processing and manufacturing and mining industries, she is a surplus producer of both livestock and crops.

Foldout Table

I shows net exports by individual sector. Arizona is deficit producer of poultry and eggs, fruits and tree nuts, products of all of the agricultural processing industries, and products of all of the manufacturing industries except aircraft.

Meat animals and products, food and feed grains, cotton, vegetables, citrus fruits, and forage crops provide the bulk of the agricultural exports. The aircraft and parts industry, the extractive (mining) industries, services, and trade and transportation provide the bulk of the exports of manufacturing, mining, services, and sectors.

From these data, it appears that

Arizona's comparative advantage in the agricultural sectors. However, with the continuously falling lies water tables, pressures of increasing population on available land, and acreage allotment programs of the federal government, this "advantage" may very well be lost in the future.

Implications of the relationships between the different sectors of the economy are discussed presented. later when trade and the interdependency transportation coefficients are

Producing Sector

Table 3. Technical Coefficients, Arizona Economy, 1958 a

Purchasing

Sectors

Livestock

Crops

Agricul- turai

Manufactur- ing and

Processing Mining

Services and

Utilities

Trade and Trans - portation

Livestock

Crops

Agricultural Processing

Manufacturing and Mining

Services and Utilities

Trade and Transportation

Scrap and

By-

Products

Net Imports

Construction

Value Added

TOTAL

.0092

.2069

.0238

.0097

.0415

.0178

.0106

.4098

.0035

.2670

1.0000

.0633

.0909

.0525

.0019

.0024

.0345

.0047

.7496

1.0000

.3196

.0453

.0683

.0688

.0599

.0767

.0242

.0803

.0040

.2530

1.0000

.0025

.0015

.3069

.0812

.0479

.0216

.1184

.0015

.4185

1.0000

.0048

.0727

.1847

.0349

.0008

.0313

.0470

.6238

1.0000

.0004

.0315

.1920

.0344

.0009

.0123

.0187

.7099

1.0000

Each per in entry dollar shows of the dollars output of the same way as in Table

1.

- of direct input from the row sector to the column sector the column sector. The various sectors in this table are defined

11

Dependence Between

Sectors

An Aggregate

View

In

Table

3 are presented the technical coefficients corresponding to the six sector aggregation of Table

1.

Table

3 was developed directly from Table

1 in the same manner processing services

30.9

Compared to the comes much of effect on

While and utilities, and processing sector the input depreciation, labor, consideration, trade and transportation sectors, while crops require

14.8 cents from these same sectors

Within the manufacturing and mining, services and utilities, and per dollar on these sectors internal inputs that other requires from the livestock a dollar,

Foldout sectors total of that agriculture, the inputs of

Table cents,

20.9 cents,

44.0 cents,

29.7 cents,

63.9 sector. The sector of output. All in than are the livestock all,

II was the Arizona economy, the industries require large inputs per dollar endogenous sectors. Thus, while livestock, crops, trade and transportation cents. The of crops to also endogenous sectors. The comparable "value added" of when indirect sectors. than

6 cents per dollar of output internally for inputs are not required by crops. developed of sectors, requires effects crops sectors livestock is

8.0 are from Foldout

Table

I.

The table shows the direct dependence among major

Arizona sectors. largest input also agricultural output from cents all manufacturing and respectively,

(32.0

"value added" inputs (state and federal the important of worth taken the mining, require and

25.8 cents worth of inputs from the endogenous sectors for every dollar of output, the agricultural cents) of

"imported inputs." With operating expenses (excluding labor) taking so taxes, the economy are:

26.7 cents for livestock,

75.0 cents for crops,

41.8 cents for manufacturing and mining,

62.4 cents for services and utilities, and

71.0 cents for trade dependence on transportation. Agricultural sectors

"value added." We will find the interest, profits) are the lowest

(25.3 cents) of all the and the other the agricultural processing sector has a large output multiplier economy. Because of of the economy inputs to the other sectors processing has for direct inputs and the value added associated generated outputs in other sectors, the total effects on the economy

(output plus value added) of the agricultural processing sector are quite substantial.

Direct inputs from agriculture into the other industrial sectors are of minor importance relative to the industrial sectors' total output. There are no direct inputs from either of the two agricultural sectors into services and utilities and trade and transportation sector, while manufacturing and mining require only 0.25 cents of direct inputs from crops sector. These mainly consist of

Arizona is farm forest

Dependence of economy differs widely between crop and livestock sectors. Livestock only

6.9 cents from products. All exported for processing. agricultural wool and mohair and sectors on cotton production the industrial segment of in the requires for livestock are negligible, crops use somewhat more further a with heavy a low into these are more dependent flow. production. Livestock

Direct and Indirect

Dependence Between

Arizona

Sectors

Generally speaking, in the discussion of agriculture's dependence on industry or vice- versa, the direct relationship discussed above is the usual one thought outweigh can be seen of.

Often the the direct indirect effects. effects of an output change by

From the data in Foldout

Tables a sector

II and III, far it that more sectors are indirectly dependent on one another than they are directly. For example, in Foldout Table

II where direct relationships are shown, only

315 of the total

676 cells in the

26 x

26 matrix are filled. In

Foldout Table

III, where combined direct and indirect requirements sectors resulting from delivery to final demand of one dollar of each sector are shown, 627 cells contain coefficients. of all output from

An

Aggregate View

The matrix of interdependence coefficients for the aggregated six sector

Arizona model is presented in Table

4.

These coefficients were adjusted? to

7

Adjusted coefficients are obtained by dividing each element in each column by the respective diagonal element of that column.

12

Table 4.

Producing Sector

Livestock

Crops

Agricultural Processing

Manufacturing and

Mining

Services and Utilities

Trade and Transportation

Interdependency

Coefficients, Arizona Economy, 1958 a

Livestock Crops

1.0179

.2263

.0266

.0562

.0804

.0270

.0002

1.0681

.0007

.1499

.0868

.0127

Agrienl- turai

Manufactur- ing and

Processing

Mining

Services and

Utilities

Trade and Trans

- portation

.3494

.1300

1.0833

.1495

.1455

.1054

.0011

.0043

.0033

1.4645

.1651

.0788

.0022

.0012

.0068

.1347

1.2530

.0525

.0006

.0004

.0019

.0746

.2546

1.0487

Each entry shows the direct and indirect requirements for products of the row sector dollar of jlnai demand for products of the column sector. per reflect changes in output

5.

In order coefficients to rather than obtain the ratios of final indirect demand and are to

Each entry in this table is the proportion direct from Table

3 were subtracted from corresponding coefficients

(excluding those in the diagonal) in Table

5 and the result was divided by the respective technical coefficients. These ratios are presented as

Table

6. that presented in requirements, the technical indirect requirements

Table of the column sector for products of the row sector are of the corresponding direct requirements.

Table 5. Adjusted Interdependency Coefficients,

Arizona Economy, 1958 a

Producing Sector

Livestock

Crops

Agricultural Processing

Manufacturing and Mining

Services and Utilities

Trade and Transportation

Livestock Crops

1.0000

.2223

.0261

.0552

.0790

.0265

.0002

1.0000

.0007

.1403

.0813

.0119

Agricul- Manufactur- Services Trade turai ing and and and Trans-

Processing Mining Utilities portation

.3225

.1200

1.0000

.1380

.1344

.0973

.0007

.0029

.0023

1.0000

.1127

.0538

.0017

.0009

.0054

.1075

1.0000

.0419

.0006

.0004

.0018

.0711

.2428

1.0000

I

Each entry shows the direct and indirect requirements for products of the row sector per dollar of output of products of the column sector.

7.44 of of

For example, a change in output by the livestock sector would generate percent as much indirect output requirement from the

Continuing down the livestock column, it is noticed the livestock sector, the indirect to direct requirement that crop for sector as it would direct requirements. Since direct requirements are

23 cents per dollar output, even such a small indirect to direct ratio will generate large the manufacturing and mining industries generated by an output change of ratio is effects. requirements extremely large

Table 6.

Ratios of Indirect to

Direct Requirements, Arizona Economy, 1958 a

Producing Sector

Livestock

Crops

Agricultural Processing

Manufacturing and Mining

Services and Utilities

Trade and Transportation

Livestock

Crops b

.0744

.0947

4.7130

.9004

.4902 e b e

.5433

.5472

5.2860

Agricul- turai

Manufactur- ing and

Services Trade and and Trans -

Processing Mining Utilities portation

.0093

1.6491 b

1.0060

1.2418

.2687 o

.1762

.4829 b

.3874

.1249 e o

.1228

.4783 b

.2015 e e

3.5400

1.2600

.2644 b b

Each entry is the proportion that indirect requirements of the column sector for products of the row sector are of the corresponding direct requirements.

Ratios are not applicable for the diagonal elements.

No direct requirements are present though indirect requirements are.

13

Table 7. Agriculture

Versus

Industry: Output Effects Resulting from

Changes in Final Demand

Producing Sector

1958

Output

Percent

Change in

Output

Resulting from a

10

Percent

Change in Final Demand for

Agriculture

1958

Plus

Final Agricultural Other

Demand Processing Industry

Total

Agriculture

Agricultural Processing agriculture Plus Agricultural

Processing

Other

Industry e

Irrelevant combinations

503,102

175,637

678,739

2,918,243

(Thousands of dollars)

377,804

151,098 e e

0.12

0.49

528.902

1,862,880

9.78

0.50

0.22

9.50 e

10.00

10.00

(4.7130). This is a surprising result, since direct manufacturing and mining inputs into the livestock sector are very small and direct livestock inputs into manufacturing and mining are zero. The circularity by which this indirect output is generated therefore takes a more devious route.

This route can be partially traced as follows: The livestock sector requires a relatively large amount of direct inputs from the agricultural they are the crops sector. While the direct inputs from processing sectors larger than into the livestock sector are not very large, the direct inputs from manufacturing and mining and trade and transportation. The direct inputs of manufacturing and mining into the crops and agricultural processing also has large direct inputs of livestock, crops, and from itself. Each of these sectors would in mining inputs.

5, seven are change on a supplying sector are seven large processing. These turn generate manufacturing

Similarly, although the direct inputs from crops sector is negligible, the highest

(5.2860) of any sector. Of greater than indirect to results processing sectors

1:1; direct indirect the that ratios,

23 is, five to indirect emphasize the fact are fairly that trade to the indirect occur in and in order large. Agricultural internal transportation direct requirement ratio direct ratios listed effects of a greater than the direct agriculture to or the interrelationships between agriculture and industry, not only in flows is and into the

Table sector's output effects. Of these agricultural correctly perceive the direct but also the indirect transactions should be taken into consideration. If only the direct transactions are considered, the interrelationships between the two sectors may be understated.

Agriculture Versus Industry

If the economy is divided into tural processing, and other industry

- main sectors

- agriculture, agricul- the interdependence between farm and nonfarm sectors can be shown.

Instead of computing an interdependency matrix for this three sector classification, induced direct and indirect require- ments resulting from a

10 using percent change coefficients of

Requirements for products of each of were interdependency then aggregated as the analysis the

Table

7.

As can be noted from the table, a

10 products of in

1958

Table required

4

.8 final demand were computed for each

The of six sectors by each its six sectors. of the six sectors results are presented in percent change in final demand for agriculture and agricultural processing combined results in a

0.5 percent change in the output of other industry.

A similar change in the other industry output induces a change of

0.22 percent in the output of agriculture plus agricultural processing. Thus, the effects of a change in industry final demand has relatively minor effects on the output of agriculture and agricul-

$Interdependency coefficients may be directly aggregated within columns but not between columns; thus this indirect approach to aggregation was required. Additional information is gained by this indirect procedure, moreover. Interdependence between sectors is weighted by final demand for the purchasing sector's output. Thus, the absolute effects on the economy rather than effects per dollar of final demand are obtained.

14

turai

processing. This is not surprising in view of the fact that the direct inputs from both agriculture and agricultural processing into industry are relatively insignificant.

The sum of the percentage changes in output occuring as a percent change in final demand for both agriculture and for other of a

10 industry is also

10 percent. While changes in output of

(for example) other industry are induced in varying degrees by a

10 percent change in final demand for output of individual sectors, if final demand for each and every sector changed by the same percent, total output for any given sector is changed by also. tion, the new economy is an exact replica of the old one but on a result that percent

In other words, if every sector's final demand increased in a fixed propor- then every input and output in the economy increases proportionally; larger scale.

A

More Detailed

View of

the Economy

The direct and indirect relationships between the different sectors of the

Arizona economy are presented below. While in the preceding section; the overall dependence between agriculture and industry were discussed, this section (a) points out relationships between individual sectors of these two aggregates, economy,

(b) develops

"multipliers" for each and (c) ranks sectors in order of multipliers. Primarily, discussion centers around Foldout Table III.

The Meat Animals and Products Sector: For the meat animals and products sector, a one

-dollar delivery to final demand generates slightly over one dollar's

($1.000085) worth of

-tenths internal of one cent. requirement

Similarly, the indirect requirements in

Indirect requirements for goods of the flows. manufacturing, mining, services, utilities, and of the relative

26 sectors importance

For this sector of of the the purchases were assigned. All purchases of stockers and feeders were through the import sector. Because of this, direct plus indirect requirements are low.

Because a one

-dollar change in final demand is approximately equal to a one - dollar change in output, column

1 of

Foldout Table III may be directly compared to column

1 of

Foldout Table II in order to discover the indirect requirements of the meat animal sector.

The to total direct and indirect requirements of food and feed grains amount approximately three cents per every one

-dollar change in output. this requirement, however, is directly generated, the indirect

Most of being only two forage output are very negligible (.0533 cents).

A one- dollar change in the output of meat animals sector generates insignificant or no indirect require- ments for the products of all other agricultural sectors. agricultural no internal processing industries are also small.

Indirect requirements for the products and services of the trade and transportation sectors vary from a low of

.0138 cents to a high of only 2.0405 cents for every one

- dollar change in output. of of

It can therefore output of the meat animals sector, the be concluded that for every dollar indirect requirements for products the nonagricultural sectors are relatively small.

The sum of the entire column of coefficients is the total direct and indirect requirements for products of all sectors within the Arizona economy generated by a one

-dollar delivery to final demand of meat animals and products. This sum,

1.3045, may be termed the meat animal "output multiplier." For every additional dollar's worth of meat animals delivered to final demand (other demands remaining constant), 1.3045 dollars' worth of requirements for additional output is generated within the Arizona economy.

Output multipliers for all sectors are listed in Table

8.9 of of

9

How does

Keynesian theory? Both multipliers reflect changes in resulting expresses the aggregate considered endogenous demand, given the technical production requirements certain sectors effects on generated effects specify this multiplier compare with the widely discussed "investment multiplier" from changes are output) by an is in in to consumption or investment. However, plier implies the adjustment equilibrium solutions. between industries. considered,

There is nor are an

It is a effect on the system) caused than "complete." For example, of original increase the state production (excluding production in by a specified of household demand each industry. Because is change by the investment multi- technical production analysis showing interdependence

The economic economy to

"balance" of income, savings, and equilibrium conditions implied. a input- output multiplier for each sector further particular interrelationships consumption by between industries. general equilibrium solution of does not in a present general the economy. Each multiplier of particular of sectors not final

"partial" rather households (and its output multiplying increased production not reflected. critical for Keynesian multipliers. Keynesian multipliers do

These income not, however,

15

Table 8.

Sector No.

Output Multiplier

Effects

Products of a

One Dollar Change in Final Demand for of

Arizona Industries

Sector

Multipliera

Rank b

15

16

17

18

19

20

11

12

13

14

7

8

9

10

21

22

23

24

25

26

1

2

3

4

5

6

Meat Animals and

Poultry and

Eggs and Feed Grains

Cotton

Vegetables

Products

Farm Dairy Products

Food

Fruits and Tree Nuts

Citrus

Fruits

Forage

Crops

Miscellaneous Agriculture

Grain

Mill

Products

Meat and Poultry Processing

Dairy Products

Canning, Preserving, Freezing

Miscellaneous Agricultural Processing

Chemicals and Fertilizers

Petroleum

Fabricated

Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

1.3045

2.0612

1.6256

1.2395

1.2309

1.0927

1.1681

1.1718

1.0881

1.1872

1.5843

2.0405

2.1606

1.3618

1.4783

1.3688

1.1972

1.4534

1.6196

1.9442

1.4899

1.5821

1.3724

1.4069

1.3143

1.3404

8

13

12

17

16

11

6

4

9

7

3

1

15

10

14

21

18

2

5

19

20

25

24

23

26

22

+ b

Total change delivery in gross of one output within the Arizona economy induced by final demand by the sector listed. a change in

Multipliers ranked in order from highest to lowest.

The Poultry

Sector: Compared to the meat animals sector, large internal flows occur

Foldout Table II to discover the magnitudes of direct versus indirect it in the poultry sector.

Therefore, column

2 of

Foldout Table amounts to 29.4 cents

III must be divided by its diagonal element,

1.120050, where a comparison with require- ments is desired. Direct and indirect requirements for food and feed grains output were

32.9 cents for every dollar's worth of poultry products delivered to final demand. When this figure is output, converted to requirements per dollar of poultry sector generates larger indirect requirements for unprocessed grains than the meat animals sector does because it uses a large proportion of pre- pared feeds grains.

- which in turn

-

17.8 cents direct and

11.6 cents indirect. The generates additional requirements for unprocessed

While the differences between the direct inputs per dollar of output to the poultry sector and meat animals sector are not substantial, for the remaining sectors the interdependency coefficients for the poultry sector are larger in every case compared to those for the meat animals sector.

Summing all interdependency coefficients in the poultry column and comparing this output multiplier with those of the other sectors, it is found that the poultry sector has the second largest output multiplier. The reasons for this is that most of the poultry industry's inputs are goods purchased from other producing sectors within the state (mostly processed feeds) as compared to the relatively larger amounts of inputs from the exogenous sectors going into the other agricultural sectors. These exogenous inputs include large amounts of labor and capital as well as imports. Moreover, this relatively high poultry sector

- occurs even grain mill products sector sector on the domestic economy is dampened.

- is a net importing to the sector.

Whenever inputs must be imported, the multiplier effect of the consuming

16

Farm

Dairy Products: Direct inputs to farm dairy products sector are somewhat similar to those of the meat animals sector except in the case of puts from sector sector

25

-

4 trade

-food

and feed grains, section and transportation. Because same general magnitude.

In the three sectors of

11

-grain

are different, the inputs to farm dairy sector are in- mill products, and the similarity in the where the two input structures of sectors

1 and

3, the interdependence coefficients also are of the input structures sector, for every dollar's worth of output, the farm dairy sector requires

12.4 cents of unprocessed grains. Consequently, the indirect requirements of processed grains for the two sectors are

0.4 cents and

2.5 cents, respectively.

Comparing the total output multipliers of the two sectors, the dairy sector has a much higher

(1.6256 versus

1.3045). relatively higher and consequently the interdependency coefficients are higher too.

For example, compared to an input of

2.3 cents of unprocessed grains to the meat animals multiplier than the meat it is found un- that animals sector

.

The

Crop Sectors: All sectors.10

Sectors with the crop sectors than the livestock sectors (and almost all the nonagricultural sectors) even though the direct inputs from the nonagricultural sectors (tractors, machinery, replacement parts, etc.) are in most cases

There were no direct inputs from either the livestock sectors or the other crop large output multiplier direct inputs from both major sectors of the model entire Arizona economy is small. forage to

1.2395 for food and feed grains.) have smaller output multipliers larger than

- for the livestock sectors. agriculture and industry.

In consequence, while a few individual interdependency coefficients of the crop sectors are large, the total multiplier effect of any crop sector on the

(Output the economy multipliers range from have

1.0881 for to of 1.3618 of

Agricultural Processing Sectors: Because each sector is directly related both agriculture and industry, the output multipliers all the

26 sectors of the model) for dairy products. of the agricultural processing industries are relatively larger. The multipliers range from a low for canning, preserving and freezing to a high of 2.1606

(the highest

Total requirements generated by a one

-dollar change in final demand for processed meat and poultry are:

1.7 cents for unprocessed grains,

9.7 cents for forage, and

0.8 cents for grain mill products. These requirements are all indirect because there are no direct inputs from any of these three sectors to the meat and poultry processing sector. The comparable figures for the dairy products sector are:

7.6 cents for unprocessed grains,

8.9 cents for forage, and

3.8 cents for grain mill products. All are indirect requirements, except for small transfers -in from the grain mill sector.

Direct and indirect requirements for unprocessed meat ner dollar of final demand for coefficient of ments for meat the entire model raw and poultry

(59.6 milk per dollar processing of cents). final is

The the largest interdependency direct and indirect require- demand for dairy products second largest interdependency coefficient (50.9 cents). is the

Nonagricultural Sectors: Of the remaining sectors of the Arizona economy

(sectors

16 through 28), the primary metals sector has the largest output multiplier

(1.9442)

, while the petroleum sector has the lowest

(1.1972)

.

While effects of individual sectors on other sectors of the economy vary depending on which sector is increasing output, unallocated services and trade and transportation are always the top two beneficiaries. aircraft and parts industry is one of the major industries in Arizona,

The yet its output multiplier (1.6196) is poultry processing

(2.0405) and dairy products

(2.1606) sectors. This might lead one to conclude industry, and the same additional amount were spent on either one of the two food processing industries mentioned above, the total impact on

Arizona economy would be greater. This conclusion, however, would be erroneous because it disregards effects on wages, income, and capital ment as well as the that if size of instead relatively of smaller than that spending more money on of meat and the the possible additional expenditure. It aircraft the invest- is true,

10

A sectors

7 few direct internal inputs are shown. Direct internal inputs are not shown for and the manner seed, from and that

9 in which nursery sector. data are published, these inputs, vegetable products, were included as components of seeds, sector legume and grass

10 and distributed

17

Table 9.

Weighted Output Multipliers for

Arizona Industries

Sector

1958

Final

Weighted

Output

Demand. Multipiierab

(1) (2)

Ratio of

Weighted

Output Rank

Multi- Rank of of

Un- plier Weighted weighted to Total Output Output

Industry Multi- Multi-

Output pliers" pliers

(3) (4) (5)

5

6

7

10

11

8

9

12

13

14

15

16

22

23

24

25

26

17

18

19

20

21

I

2

3

4

Meat Animals and Products

Poultry and Eggs

Farm

Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Citrus

Fruits

Forage Crops

Miscellaneous

Grain

Mill

Meat and

Agriculture

Products

Poultry Processing

Dairy Products

Canning,

Misc.

Preserving, and Freezing

Agricultural Processing

Chemicals and

Fertilizers

Petroleum

Fabricated

Metals and Machinery

Aircraft and

Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

(Thousands of dollars)

114,106 14,885

7,158

4,737

12,427

150,606

73,479

1,591

9,722

4,551

5,927

10,243

46,448

39,177

3,853

1,476

771

1,541

18,538

8,029

186

1,139

495

704

1,622

9,478

8,465

524

46,059

23,574

1,659

67,249

70,529

96,569

105,254

228,144

108,217

172,827

502,148

631,984

6,809

3,226

199

9,774

11,423

18,775

15,673

36,094

14,853

24,316

65,999

84,708

4

9

8

13

12

17

16

15

10

14

21

11

6

18

2

24

23

26

22

7

5

19

20

25

3

1

8 la

21

18

6

14

26

20

24

22

17

12

13

23

15

16

25

11

10

9

4

2

1

5

7

3

0.363

0.036

0.019

0.038

0.452

0.196

0.005

0.028

0.012

0.017

0.040

0.231

0.207

0.013

0.166

0.079

0.005

0.239

0.279

0.458

0.383

0.881

0.363

0.594

1.611

2.068 s b

Sum of columns

27 through

37 in

Foldout Table

Output multipliers (from Table

8)

I. for each sector are multiplied by an amount equal e to

10 percent of the

1958 final demand shown in column

1.

For example, the weighted output multiplier for meat animals and products (sector

1) is

$14,885,000 [11,411 (10 percent of column

1) X 1.304451

(Table

8)

Column

2

_

$4,096,982,000

(total output of

=

14,885 all through

26, 29, and

30).

"Ranking from highest to lowest for column

2.

See Table

8 for output multipliers. private business sectors; that is, sectors

1 however, that an ing spending on increase in expenditures on food processing industries (keep- aircraft industry constant and assuming income effects did not alter final demand for other sectors) would have a greater effect on

Arizona's total gross domestic output than if a similar amount were spent on aircraft (again assuming all other variables remain constant).

The more important concept is the multiplier weighted by the size of the change in final demand. Similar sized changes in final demand for different sectors of the economy are unlikely. Such comparisons are made in the following section.

Weighted Output

Multiplier Comparisons

Table

9 shows weighted output multipliers for each of the

26 sectors of the

Arizona model ranked in order of their magnitude. Multipliers listed in

Table

8 are weighted with

10 percent of their respective final demands.lt

A

10 possible a percent short -run change in final demand was selected final static input- output demand changes arbitrarily within the realm model. The change may be considered either the framework of of positive or negative.

18

Table output

9 also of all presents the ratio private business of each sectors. weighted output multiplier

Total output of all to gross private business sectors of the economy was

$4,096.982,000.12

From the data presented in Table

9, it can be seen multipliers are weighted, their rank nineteenth.

Among changes. multiplier for the dairy products ranked first, drops that from when the output

For example, the unweighted while the weighted multiplier second place to the agricultural and agricultural processing sectors, the cotton sector has the largest absolute effect with induced requirements of $18,538,000.

Among the manufacturing and mining sector, the sector with the largest output of

$36,094,000. The unallocated services sector which ranked sixteenth in Table the unweighted output multipliers are weighted by a

10

8 ranks percent first when change in final demand. Similarly, seventeenth in Table

8 the ranks trade and transportation sector which ranked second in Table

9.

The respective induced requirements for the two sectors are

$84,708,000 and

$65,999,000.

Multiplier

Dampening

All multipliers were computed under the assumption relationships. This procedure was selected to of fixed input -output illustrate and analyze prevailing relationships ing assumption of each multiplier is not change markedly as final demand changes. fixed

In a state model where large imports are possible, the Iimitations of the input- output assumption are magnified.

In reality, the relationship between domestic inputs and imported inputs per unit of output may change rapidly. If more imports are purchased because of the change, tive effects of the final demand change may be dampened. the multiplica-

A concrete example will illustrate the point.

Final demand for grain mill products is satisfied by both domestic production of mill products and net imports of products, the final product. However, no net imports of to satisfy current production unprocessed grains are required.

Thus, of mill the model implies of that rather than to make detailed projections over that the structure increased demand for grain mill products of time. The the underly- economy does more domestic production of grain and more imports of the final product.

However, Arizona farmers might not find it profitable would be to grow met by a mix more grains to satisfy the increased demand. Under these circumstances, net imports of unprocessed grains might be necessary. The actual multiplier effect of a positive change in final demand for grain mill products would then be some- what smaller than shown

(1.5843)

.

Similar situations may be observed in other industries.

V. Water in Arizona's

Economy

Water is a key factor of production in many industries. At least small quantities of this resource are used by all sectors of the Arizona economy.

This section economy affects each differs describes how the interrelated structure rather than dollar terms. of the Arizona sector's water requirements.

As with other inputs, each producing sector generates both direct and indirect water requirements. Water from the inputs discussed in the previous sections, however, in that water is not produced. Water is a

"primary resource."

By a "primary resource" we mean a basic factor of production whose total quantity may not be increased in response to additional requirements. (Other primary resources are land, labor, minerals, space, etc. Labor will be discussed in a following section.) While of demand as the available supply of these resources are not a function with most produced inputs, requirements for primary resources are a function of output, and thus, of final demand.

Inputs of primary resources are defined in physical

12

Total output is defined as the value of goods and services (gross domestic output) produced by private business sectors of the economy (sectors

1 through

26, 29, and 30).

Scrap and by- products is excluded since it is merely a dummy" sector. The value of scrap and by- products is included in output of the individual producing sectors.

19

Table

10.

Water

Use by Arizona Sectors,

1958

Sector

Water Intake

Water

Consumed

Gross Water

Used

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Meat Animals and Products

Poultry and Eggs

Farm

Dairy

Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

(1,000,000 Gallons) (Acre

-Feet) (Acre -Feet) (Acre -Feet)

19,016.2

19.9

2,144.1

578,517.2

616,711.1

154,304.5

5,512.1

Citrus Fruits

Forage Crops

Miscellaneous

Grain Mill

Products

Meat and

Agriculture

Poultry Processing

Dairy Products

35,980.1

523,996.8

56,150.6

145.2

198

147.2

Canning,

Misc.

Preserving, and Freezing

57.8

Agricultural

Processing

324.6

Chemicals and

Petroleum

Fertilizers

Fabricated

Metals and Machinery

Aircraft and

Parts

Primary

Metals

Other

Manufacturing

Mining

383.2

17.3

93.6

136.9

10,000

496.2

15,065.1

58,358

61

6,580

1,775,404

1,892,617

473,543

16,916

110,419

1,608,087

172,320

446

608

452

177

996

1,175

53

287

420

30,689

1,523

46,232

58,358

61

6,580

1,420,323

1,514,094

378,834

13,533

88,335

1,286,470

137,856

" s

A a

21,482 a

10,152

58,358

61

6,580

1,775,404

1,892,617

473,543

16,916

110,419

1,608,087

172,320

453

813

460

180

1,752

6,670

945

1,309

2,462

297,682

9,505

78,475

23

Utilities

24 -26

Combined Commercial

TOTAL, All Sectors

12,814.8

7,630.3

2,039,862.8

39,341

23,416

6,260,120

9.529

12,070

4,957,677

23,416 u

Negligible

Data not available

As with produced inputs, the first step is to look at the direct water requirements of each sector. This in itself reveals a good deal about the demand for water and

Then, possible future water needs as the economy of the State expands. the direct water requirements are used to trace out interindustry water requirements, usually obscured when looking at direct water usage only.

Data were gathered from numerous sources as described in

Part

II of this report.

One alteration was made in sector definition. Sectors

24, 25 and

26 were aggregated into one sector and are called the

Combined Commercial

Sector. This was done since no differences could be found in these sectors' water requirements.

The total amounts of water used by Arizona industries in

1958 are presented by sector in Table

10.

Definitions of alternative measures of use are included in the following discussion of direct water coefficients.

Direct

Water

Coefficients

Knowing the economy makes total direct water requirements of sectors in the Arizona it possible to derive technical coefficients of water use.

A technical coefficient for water usage is a ratio of the water requirement in a given sector to the gross output of that sector. Gross output was determined for each sector earlier in this study.

That information was used along with the water requirement estimates to arrive at technical coefficients.

In Table

11 three types of technical water coefficients are presented; all are in terms of acre

-feet per thousand dollars of output.

The use of three decimal places is not intended to stress the precision of the coefficients but rather to help illustrate orders of magnitude. Any of the water coefficients can easily be transformed from acre

-feet to gallons since one acre -foot equals

325,872 gallons. The technical placed on the Arizona water supply by each productive sector, operating with the current technology. coefficients give us a measure of the direct demands

20

Table

11. Direct Water Coefficients for the Arizona Economy by Sectors, 1958

Sector

Water

Intake

Gross

Water

Used

Water

Consumed

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Meat Animals and Products

Poultry and

Eggs

Farm Dairy Products

Food and

Cotton

Feed Grains

Vegetables

Fruits and Tree Nuts

Citrus

Fruits

Forage Crops

Miscellaneous

Agriculture

Grain

Mill

Products

Meat and

Poultry Processing

Dairy Products

Canning, Preserving, and Freezing

Miscellaneous Agricultural Processing and Fertilizers

Chemicals

Petroleum

Fabricated

Metals and Machinery

Aircraft and Parts

Primary Metals

Other Manufacturing

Mining

23

Utilities

24

-26

Combined Commercial

(Acre -Feet

.407

.012

.010

.043

.020

.030

.020

.003

.004

.187

.009

.147

.210

.010

.008

.252

42.087

12.551

6.413

9.950

11.154

46.938

6.408

.019 per

81,000 of Output)

.407

.407

.008

.252

.008

.252

33.670 42.087

12.551

6.413

9.950

11.154

46.938

6.408

.019

.016

10.041

5.130

7.960

8.924

37.550

5.127 e

.010

.043

.035

.171

.356

.013

.025

1.810

.054

.249 b

.010 e

0 e e

0 e

.131 e

.032

.051

.005

0 b

The

1958 water intake coefficient for this sector would be

63.042 instead of

42.087 if strictly data were used and has been published as

63.042 elsewhere. However, since

1958 average yields and prices for most grains have has risen sharply while per acre water use remained relatively constant. siderably since

1958.

Accordingly,

Also this the crop mix of coefficient was this sector has changed con- all calculations and tables appearing herein were revised to conform.

Data not available.

Negligible.

The "water intake" coefficients represent the number of acre

-feet of new water required by each sector to produce

$1,000 of output. Those sectors with high intake coefficients are ones which require large amounts of new water as an input in order to produce. It is clear give an indication of the size that have the largest direct demand for water per dollar of output. For example, with the given technology, the direct intake coefficients indicate increase in food and feed grains production would create a need for approxi- mately

42 acre -feet of water. In the utilities sector a $1,000 increase in output would create a direct need for

.21 acre -feet of water. The intake coefficients that water the agricultural sources must crop sectors be in that order a $1,000 to supply this input to sectors in sufficient quantity. Given existing technologies, each

$1,000 produced in any sector given by is going to the corresponding intake require a direct coefficient. Thus, any water withdrawal expansion of indi- vidual sectors would require looking at available water sources to be sure that they could supply the necessary intake over a protracted period.

The "gross used, of coefficients water used" coefficients relate the entire amount of water including recirculation, per

$1,000 of production.

By comparing this set with the water intake coefficients one can locate those sectors in which recirculation is an important aspect of water usage.

For example, primary metals would require nearly

10 times as much water intake if there were no possibilities for recirculation in the production processes. Wherever possibilities for recirculation are utilized, the actual withdrawal of water from existing sources is reduced by the amount of the recirculation. to conserve a

Future efforts scarce water supply might well exploit any potential for reusing

21

water once it is withdrawn so be reduced.13

The

"water consumption" are actually coefficients show consumed by each sector in the acre producing

-feet

$1,000 of of water which output. Water consumption coefficients given an indication water from Arizona supplies by the producing of the sectors. permanent removal

A of particular sector may have a high water intake but the same water, once consume very little of the water. This means producer.

Thus, a comparison of the consumption coefficients with the intake coefficients gives actually an indication consumed. of

For example, the amount food of water withdrawal which and feed grains withdraws about is

42 acre -feet of water per

$1,000 of production; however, consumption is about

34 acre -feet. The mining sector withdraws

.147 acre -feet and consumes

.032 acre -feet per

$1,000 of production. Clearly, the agricultural sectors

(1

-10) are

$1,000 increase however, in returned production of to sources, can be used primary metals will of again cause a output would by some water supplies. For example, the consumption coefficients indicate that other the biggest consumers of water in the Arizona economy. Many of the manu- facturing and agricultural processing sectors are negligible consumers of the water which they withdraw and no consumption coefficients are computed for these. In considering possible consider water consumption because it represents the permanent drain on direct increase in water consumption of

.131 acre -feet; the same $1,000 increase in aircraft and parts would have a negligible effect on water consumption.

Note, that regardless of that total intake per dollar growth of the consumption the Arizona of economy, one water which takes sector still has an intake requirement for water which must be met. must that a place, each

Direct

Plus

Indirect Water

Requirements

for

Production in any one sector of the economy creates a direct demand water within that sector but also gives rise to indirect demands for through other sectors. The direct sectoral demands for water as a water factor of production have already been examined both as a total requirement and in terms of coefficients relating water quantities per

$1,000 of output. Indirect demands occur since each sector of the Arizona economy relies on the products of other creates a demand for inputs; this requires water usage in the input supplying sectors. By combining the water but also usage data with the input- output initial change. Specifically, the entries in the model, it is possible to trace out these interdependency relations and, thereby, see the total effects on water withdrawal of a change in final demand output in any of

The sectors for one sector. matrix of inputs. interdependency

III) shows direct plus indirect input requirements of the producing sectors per dollar product deliveries to final demand. This multiplied by the vector of direct water intake coefficients, column one of

Table

11.

The result is a new matrix (Foldout Table IV) which shows the amount of water intake required by every other sector in order to produce

$1,000 of output for final demand in any one sector. This water interdependency matrix not only shows the direct water requirements of a sector in order to facilitate a

$1,000 change in final demand output,

Thus, expansion coefficients includes the of water production

(Foldout Table matrix was requirements induced in other sectors because they must supply inputs to the sector experiencing the water matrix, in one sector

Wij, the indicate the acre -feet of water intake required directly and indirectly by industry i to produce

$1,000 of output for final demand in industry j. For example, column three (farm dairy products) shows that

$1,000 of production for final demand in this sector requires

.259 acre

-feet of water intake internally; at the same time water requirements in sector

4

(food and feed crops) are

6.433 acre - feet; in sector

9

(forage crops)

8.398 acre -feet; and in sector

23

(utilities)

.003 acre -feet. These requirements as well as the requirements for the remaining

22 sectors are all induced by the initial $1,000 of final demand in sector

3.

18

Some

"recirculation" occurs in crop agriculture where " tailwater" systems are in use.

No data on the quantity of tailwater use are available but it is considered almost negligable relative to total water intake.

To the extent that tailwater is used, the water intake coefficients should be slightly smaller. The recent trend in

Arizona crop agriculture has been toward dead -level irrigation and away from tailwater systems.

22

Effects on each of water intake caused by final demand the sectors defined in this study in a changes can be similar fashion. traced out for

One merely selects the the column change in representing the is to be studied. The sector for which interdependency water intake required in every other sector change in final demand in the sector under study. a final coefficients down demand change the due column give to a $1,000

The columns of Foldout Table aggregate water requirements on an

IV are totaled interindustry to give basis a picture of for the delivery the of output to final consumers. These totals may be contrasted with the direct technical water intake coefficients shown previously. Dividing the column totals of

Foldout gives

These

Table

IV by the corresponding direct water coefficients

(Table

11) the water multipliers for all endogenous sectors of the Arizona economy. water multipliers along with the direct intake and direct plus indirect intake requirements for a $1,000 change in final demand are presented in

Table

12.

For example, for sector

24

(selected services) the direct plus indirect change in water intake is

.031 acre -feet per

$1,000 of deliveries to final demand. The direct intake for sector

24 is

.010 acre

-feet per

$1,000 of output.

The ratio of these two estimates gives a multiplier value of

3.100.

Table 12. Water Multipliers for the

Arizona Economy

Sector

Direct

&

Indirect

Direct Requirement

Requirement per per

$1,000 of

Output

$1,000 of

Final

Demand Multiplier

LO

19

20

21

22

23

24

25

26

15

16

17

18

11

12

13

14

1

2

3

4

5

6

7

8

9

Meat Animals and Products

Poultry and

Eggs

Farm

Dairy

Products

Food and

Cotton

Feed Grains

.407

.008

.252

42.087

12.551

Vegetables

Fruit and Tree Nuts

6.413

9.950

Citrus Fruits

Forage Crops

Miscellaneous

Agriculture

Grain

Mill

Products

Meat and

Poultry Processing

Dairy Products

Canning, Preserving, and

Freezing

Miscellaneous

Parts

11.154

46.938

6.408

.019

.012

.010

.043

Agricultural Processing

.020

Chemicals and Fertilizers

.030

Petroleum

Fabricated

Metals and Machinery

Aircraft and

Primary Metals

.020

.003

.004

.187

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

.009

.147

.210

.010

.010

.010

Acre

-Feet

9.258

13.969

15.167

43.438

13.560

6.542

10.i69

11.798

47.077

10.252

12.898

5.575

7.554

.811

1.688

.293

.033

.038

.033

.321

.182

.215

.246

.031

.031

.064

22.747

1746.125

60.187

1.032

1.080

1.020

1.022

1.058

1.003

1.600

678.842

464.583

755.400

18.860

84.400

9.767

1.650

12.667

8.250

1.717

20.222

1.463

1.171

3.100

3.100

6.400

The

One

A low

Thus, must take care in interpreting the precise meaning of these water multiplier indicates sectors which un- weighted water multipliers.

They are merely ratios which say little about the absolute quantities of water intake required by the various sectors.

A high water multiplier indicates that a sector demands small quantities intake compared to the water intake required by the suppliers of its inputs. that a sector's direct of water intake is water high compared to the water intake required by sectors which supply its inputs. the technical coefficients presented earlier are are themselves high or low designed water multipliers help in locating sectors which, due to relationships arising from input requirements, cause high or low water intake relative to their own as changes occur in final demand. to locate those water users per dollar of output. interindustry

23

5

8

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

1

2

3

4

Table

13.

Weighted Water Multipliers for the

Arizona Economy

Sector

Meat Animals and

Poultry and Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Citrus Fruits

Forage

Crops

Miscellaneous

Grain

Mill

Meat and

Canning,

Products

Poultry

Dairy Products

Preserving

Miscellaneous

Chemicals and

Products

Agriculture

Processing and Freezing

Agricultural Processing

Fertilizers

Petroleum

Fabricated Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

Weighted

Water

Multipliers

(Acre -Feet)

105,639

9,999

7,185

53,980

204,222

48,070

1,618

11,470

21,425

6,076

13,211

25,895

29,594

312

7,775

691

5

256

234

3,100

1,916

4,905

2,662

536

1,557

4,045

Rank of

Weighted

Multipliers

2

10

12

3

16

18

14

17

22

19

15

21

26

24

25

6

5

23

11

1

4

20

9

7

13

8

Rank of

Unweighted

Multipliers

7

24

22

26

18

3

4

2

9

1

6

23

21

25

12

16

8

19

20

15

5

11

17

10

14

13

The really high water multiplier values (greater than 25) indicate the extent to which a sector is linked to an agricultural crop sector for some of its inputs. The livestock producing sectors (1

-3) and the agricultural processing sectors

(11

-15) are clearly sectors which have high multipliers because of requires approximately

.012 acre of this linkage. For example, output for final

Table IV shows of

-feet sector of demand In order for the

12

(meat and poultry processing) water intake

$1,000 itself worth of to produce

$1,000 meat and poultry products to be delivered to final demand, however, column

12 of

Foldout that the food and feed grains industry requires

0.71 acre -feet water, the forage crops industry

4.58 acre -feet, and so on. The result is a water multiplier of

465 in sector

12.

This means that the direct water with- drawal change which occurs in sector

12 as a result of a change in final demand is only 1/465 of effects the total water withdrawal have been accounted sector

16

(chemicals and fertilizers) can be change for. Similarly, the explained sector

16 on sector

4

(food and feed grains) for a when all interindustry multiplier of by noting almost the reliance portion of its inputs.14

10 in of

Weighted Water

Multipliers

13

Still another picture of Arizona's water intake structure is shown in Table where weighted water multipliers have been computed. These weighted multipliers are ranked (the largest being number one) and compared with the rankings of the unweighted multipliers first presented.

In considering potential changes in final demand which may take place in the short run, one must be cognizant of the present size and potential for change in final demand in each sector. Clearly some sectors have considerably more potential for growth than others. The unweighted water multipliers

14

Recall that the size of produced inputs remain in in final demand. this multiplier is based on the assumption that domestically the same proportion to Value of output as before the change

For example, it is quite possible that meat and poultry output could be increased using imported grains. In such a case the actual increase in water use could be quite small.

24

were derived by looking at a $1,000 change in final demand for each sector.

The change occurred in the level of to the

Arizona's pattern conclusion of economy because of growth water supply. by assuming reliance of sectors on agricultural that a

10 percent existing final demand in each sector. Thus, the weighted water multipliers are based on the

1958 level of final demand and give an horizontal. short change. pattern of

This new set of multipliers is not a ratio and or a pure number as are the unweighted multipliers. Instead, the weighted multipliers are given in acre is

-feet of water intake per

10 percent change in final demand. Each value the amount by which water intake would be affected if a

10 percent change occurred in final demand. Both direct and all indirect effects have been accounted for. For example, a

10 percent decrease in final demand for Arizona cotton

($15,060,600) would require a decrease in water intake of 204,222 acre part of this total would is to be realized be as water demands sector itself with the remainder distributed through the economy.

To satisfy a

10 percent increase in final demand for mining products

($22,814,400) would require additional water intake of

4,905 acre -feet. that the water intake matrix and the water multipliers give is helpful in understanding the necessary water input relations which must prevail if a balanced (from a supply point of weighted multipliers were calculated

-feet; the largest

The view) indication of what happens to water intake under a

-run balanced integrated view of the

Arizona water economy place. Certain industries which appear at first glance to be negligible demanders of water may actually cause considerable changes in water with- drawal when the total impact has been considered along lines such as those presented here.

The high water multipliers which occur in the

Arizona that these inputs

It is should be perfectly final imported true that demand inputs in changes order the of the cotton may lead to take conserve organic one inputs from

Arizona agriculture could be obtained more and more on an out -of -state basis; however, the income effects (and employment which will be taken up later) that accure in the local production of these basic inputs would be foregone as such a procurement pattern developed. Thus, one is faced with the economic problem of choice.

Agriculture is a high water user but at the same time generates substantial amounts of income and employment in

Arizona.15

Value

Added

Per

Unit

of Water

Use

Another way of measuring the economic importance of water on a regional basis is to look at the amount of value added per unit of water intake in each of the sectors.

The analysis here looks only at direct water intake and direct value added for each of the sectors; the emphasis is on single industry values and indirect effects are ignored.

Value added, estimated previously in this study, is comprised of hired labor wages, depreciation, interest charges, state and federal government taxes, and proprietor's profits. Direct value added gives some indication of the income generating effects which single industries have in the economy.

Dividing the total value sector yields added by the total water intake for each Arizona the set of coefficients presented in Table

14.

These are ranked with the sector having the largest value added per acre -foot of water intake being number one.

If Arizona water resources were sufficient to sustain long -term growth in all sectors, then questions of high priority and low priority would not be paramount. Where

(number one is highest) should be encouraged if high value added per unit of income ing water intake water prime consideration. This would goal for Arizona because payments in the

The values in Table

14 also give some the various sectors could that is a is scarce, the high the high ranking industries generate the most economy absorb price increases in the supply such price increases per unit could not of ranked industries in Table water used. indication of the extent to which be passed seem to be of along to a reasonable water, assum- buyers of

14 the

'

A detailed analysis of the value of water in agriculture as an income generator in the total

Arizona economy is presented in Young, Robert

A., and

William E. Martin, "The

Economics of Arizona's Water Problem," Arizona Review,

College of Business and Public

Administration, University of Arizona, March,

1967.

25

Table

14. Value

Added

Per Acre -Foot of Water Intake

Rank of

Each, 1958 in

Arizona Sectors and

Sector

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

5

6

7

1

2

3

4

Meat Animals and Products

Poultry and

Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Citrus Fruits

Forage

Crops

Miscellaneous

Agriculture

Grain

Mill

Products

Meat and Poultry

Dairy Products

Processing

Canning, Preserving, and Freezing

Miscellaneous Agricultural Processing

Chemicals and Fertilizers

Petroleum

Fabricated Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Combined Commercial Sector

Dollar

Value Added

Per

Acre

-Feet

582.43

24,386.08

1,813.34

13.52

58.42

126.14

67.57

65.67

17.95

118.76

16,784.15

307.77

20,208.14

9,305.96

26,066.10

5,075.27

6,264.17

140,331.18

110,791.05

1,684.79

51,918.38

3,247.99

2,886.44

60,760.73

Sector

Rank

16

6

14

24

22

18

20

21

23

19

8

17

7

9

5

11

10

1

2

15

4

12

13

3 product.

Only a portion of value added is firm profit; thus, those affected by water price. To the extent industries where value added per acre -foot of water intake is quite small would face a

"profit squeeze" if agricultural crop sectors and possibly

MacKichan is and self- supplied water prices rose substantially. It can be seen that the primary metals are most likely to be that industries are self -supplying in their water needs, the market effects of a water price increase can be avoided.

Kammerer16 rather indicate that nearly all industrial water intake than purchased in the market. However, if declining

Arizona water tables require the development of new sources of supply or greater investment in existing supplies, then future cost increases may also affect those firms which supply their own water.

VI. Labor in

Arizona's

Economy

Labor is the second primary resources to be examined. Each sector of the

Arizona economy requires this input directly in order to facilitate production; and because of interrelationships in the economic structure, any one sector will give rise to indirect labor requirements in other sectors as output changes.

The following section describes the direct labor requirements of both the endogenous and exogenous sectors of the endogenous sectors of the input- output

Arizona model are economy. further

Then the analyzed and interindustry effects on labor requirements are traced out.

Labor requirements were estimated in both man -hours and number of workers for the base summarized in

Part II year of this

1958; report details

17 of the estimation procedures are

1960,

'

17

MacKichan, K. A., and J.

C.

Kammerer, Estimated Water

Use in the United States,

United States Department of

Interior, Geological Survey, Circular

456, 1961.

Part economy is

II also presents payroll data for sectors under examination.

11

-22,

24, and

29

-32.

Since the data are incomplete they are not included here where the interdependency of the entire

26

Table 15. Total Labor Requirements and Technical Labor Coefficients

Arizona

Sectors, 1958 for

Sectors

1,000

Labor Use

Number

Man-

Hours of

Workers

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

Meat Animals and

Poultry and

Eggs

Products

Farm Dairy Products

Food and Feed Grains

Cotton

Parts

Construction

10,928

946

4,654

6,291

Vegetables

Fruits and Tree Nuts

Citrus Fruits

Forage Crops

Miscellaneous Agriculture

Grain

Mill

Products

Meat and Poultry Processing

Dairy Products

Canning, Preserving, and Freezing

Miscellaneous

Chemicals and Fertilizers

Petroleum

Fabricated

Metals and Machinery

23,204

14,283

457

2,548

5,235

4,668

1,135

1,816

3,085

528

Agricultural Processing

5,751

2,584

105

15,300 18

19

20

21

22

23

24

25

26

Aircraft and

Primary Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

29 -30

31

Contract

State

&

Local

Government

32

Federal Government

All

Arizona Sectors

20,738

9,895

23,708

32,181

28,796

56,120

198,108

113,361

52,423

33,804

37,678

710,330

8,391

723

3,575

4,832

17,825

10,973

352

1,955

4,024

2,726

509

856

1,503

261

2,873

1,196

50

7,311

9,549

4,976

12,322

15,875

13,313

26,509

93,318

53,515

26,600

21,207

18,839

365,958

Labor

Coefficients

Man

-Hours

Workers per

$1,000 per

$1,000 of Output of Output

76.218

116.496

216.987

223.375

153.878

193.421

268.647

257.440

152.790

173.545

48.769

35.188

66.859

126.892

113.897

66.336

39.593

154.627

210.348

60.182

134.865

102.318

153.577

267.453

313.215

113.983

104.848

67.881

87.077

141.297

.022

.016

.032

.063

.057

.031

.019

.058

.089

.137

.172

.118

.148

.207

.197

.117

.107

.074

.097

.030

.070

.050

.071

.126

.147

.054

.053

.043

.044

.073

Sectors

29 and

30 were combined for this portion of the study.

Direct Labor Coefficients

Table

15 shows the total number of man -hours required and the total

. number of workers required by each sector of the Arizona economy in

1958.

By looking at the total labor requirements one can locate those sectors which had the greatest demand for labor in

1958.

Trade and transportation, mining, the two services sectors, construction, and the two government sectors are the largest

Arizona employers. Cotton is the largest agricultural employer while other manufacturing has the largest demand among the manufacturing and processing sectors. The relationship between the number of man -hours required and the economy. The fewer average figures of part number services sectors show a of workers employed agricultural sectors tend to have more workers employed for annual hours than the rest of the economy. The trade and rather high average number

-time workers are included in of man -hours per worker for

1958.

The estimates of total number of workers are all to be interpreted as the average of level of employment in are not exactly representative of man -years of employment.

A number in the agricultural sectors and the trade and service sectors.

Those workers for the nonagricultural sectors are permanent in the sense just that sector for the employment estimates, seasonal in is not uniform the year. character. throughout the

However, the particularly part -time that their jobs were year -round and not

Labor requirements in terms of man -hours are a more basic measure of

27

the required labor input than the estimate for total number of workers.

The man -hour labor requirements for any level of production may be quite fixed for a given sector. However, the hiring pattern economy. These are also shown in Table

15

(columns three direct technical labor coefficients reveal the number of man -hours and the number of workers required in each sector per

$1,000 of output produced.

For example, utilities requires

153.6 man -hours to produce

$1,000 of product; sector,

$1,000 of output requires

153.9 man -hours or

.118 workers. The direct labor coefficients give an indication of the relative labor intensity of

Arizona industry. The total labor requirements of a sector are a function of the absolute size of the sector as well as the "input mix" being used.

By dividing each sector's total labor requirement by the output of each to a common base so

Those sectors with high labor coefficients place the greatest demands on and used to meet this man four). transportation. There in any one sector from a change in the level of production in

-hour requirement may be extremely flexible and up to the discretion of manage- ment. For example,

105 man -hours of labor could be performed by two workers putting in a

521/2

-hour week, or three workers could be hired for a

35- hour week. In the extreme, ten men could be hired for one

101,2

-hour day.

Thus, if one is of along effects concerned with what happens the Arizona economy, the projection of changes in man -hour requirements only needs the assumption of constant technology. The projection of changes in the number of workers hired requires the additional assumption existing hiring

Dividing patterns are maintained changes. that the total labor requirements by the gross output of the respective sectors yields a set of direct technical labor

-input coefficients the utilities sector uses

.071 workers for this

$1,000 of are considered. that only the trade the level effects low labor coefficients are small demanders of this of production that for and the Arizona sector, we

The reduce the "input mix" are left. labor resources per

$1,000 of output and are the most labor intensive. Sectors with production. In Arizona, with selected services and difference in the results depending on whether the man -hours or the worker coefficients as as production levels change in of output. primary

In the cotton resource per

$1,000 the agricultural sectors are the most labor intensive is some

The direct labor coefficients can be used to estimate the employment that sector. For example, if farm dairy products were to decrease its production

$10,000, this would reduce

2,170 the man -hours required. Correspondingly, the number of workers required would be reduced by

1.37.

Direct

Plus

Indirect

Labor Requirements

The input- output model makes demands for labor in the Arizona economy. As each sector engages in production, it buys inputs from other sectors; the input supplying sectors must employ labor in their it productive possible to look beyond the processes. In order to see direct the total effect on to add effects labor demand of a which occur because given level the direct employment of the basic of effects to output in one sector, it is necessary the indirect, induced employment input structure. Foldout Table III is a matrix of interdepency coefficients for the Arizona economy which portrays the input requirements per dollar of final demand for the

26 endogenous sectors of the Arizona model. Multiplying the matrix of interdependency coefficients

This new times matrix labor requirements of each sector demand. The vector of labor coefficients used was the first

26 entries in column three of

Table

15. the vector of direct labor

(Foldout Table

V) shows per coefficients yields a new matrix. the direct and indirect man -hour

$1,000 of output produced for final

A typical entry in the new man -hours of labor would be matrix required

(Foldout Table by the sector listed

V) on tells how many the left in order for the sector listed at the top to supply

$1,000 of product to final demand.

These entries take into account all direct and indirect effects in the economy.

Labor demand is a derived demand because the sector supplying final demand has a need for inputs; in order to supply these inputs the other sectors must hire labor according to technological conditions. For example, from column

11

(grain mill products) it can be seen that

$1,000 of output for final demand requires man -hours of labor in other sectors as follows: 67.8 in sector

4, 1.3 in sector

10,

50.5 in sector

11, 0.2 in sector

13, 2.6 in sector

21, and

17.7 in sector

25.

28

Table 16. Direct Plus Indirect Man -Hour Employment Effects

Final Demand, by Arizona

Sectors of a

$1,000 Change in

Sector

Direct Plus

Indirect

Requirement

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

4

5

6

7

1

2

3

Meat Animals and Products

Poultry and

Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Fruits

(man- hours)

124.053

252.673

324.422

256.563

187.976

206.021

Citrus

Forage Crops

Miscellaneous

Agriculture

Grain

Mill

Products

291.496

282.731

164.519

203.260

Meat and Poultry Processing

Dairy Products

158.038

157.703

285.374

Canning, Preserving, and Freezing

194.318

Miscellaneous Agricultural Processing

185.076

Chemicals and Fertilizers

Petroleum

Fabricated Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

122.916

76.853

222.645

314.973

163.895

215.026

178.492

208.328

343.147

363.014

166.339

Sector

Rank

24

9

23

6

15

17

7

20

14

22

3

8

16

13

5

25

26

10

4

21

11

18

12

2

1

19

Multiplier

1.63

2.17

1.62

1.85

1.94

1.44

1.50

2.72

1.59

1.74

1.49

1.15

1.22

1.06

1.09

1.10

1.08

1.17

3.24

4.48

4.27

1.53

1.36

1.28

1.16

1.46

Sector

Rank

8

17

18

21

15

10

'7

6

16.

13.

4

11

9

5

14

22

19

26

24

23

25

20

3

1

2

12

Any of the

26 endogenous sectors can be examined with regard to man -hours of labor demand in a similar fashion; it is only necessary to select the appro- priate column and read down for the labor interdependency relationships.

The total man -hour labor requirement, direct plus indirect, generated by any one sector column total for economy; labor first and second in two columns of per that sector

(column

2,

Table 16).

Trade and transportation and selected services final demand. Five of the agricultural sectors

Table

16 tell what the total effect on labor demand in Arizona would be if final demand were to change by

$1,000 in any sector.

The rankings tell how the sectors compare with one another in effects. their total the

1) these totals are presented for the

26 endogenous sectors of the Arizona then the sectors are ranked with the requirement per

$1,000 of in

$1,000 their total production for final demand

Foldout Table of labor final

V.

In one

Table is

16, given by

(column generating the greatest demand being assigned number requirement per rank

$1,000 of in the top

1 rank production for

10.

These first employment one

The total man

-hour labor effect of a producing for final demand because

$1,000 of change in induced final the majority of the labor requirement could arise in sectors other effects in one sector is the sum of the man -hours required in the sector undergoing the change and the induced effects in the other

25 sectors. Two sectors could have the same total impact on Arizona labor requirements yet vary greatly in the distribution of this impact. In one case, most of the labor demand requirement could arise internally in the sector producing for final demand; in the other case, than the operating through the input structure.

In column three of

Table

16, a set of multipliers have been calculated. These multipliers are the ratio of direct plus indirect to the direct labor requirement of a

$1,000 change in final demand.

A sector with a high multiplier value causes a relatively large amount of indirect labor demand for a given change in output for final consumers.

A low multiplier value indicates that most of the labor requirement arising from a change in output for final

29

Table 17. Direct

Plus

Indirect Effects on Number

Change in Final Demand, of

People

Working for a

$1,000 by Arizona

Sectors

6

7

8

9

10

1

2

3

4

5

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Sector

Meat Animals and Products

Poultry and

Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Citrus

Fruits

Forage

Crops

Miscellaneous Agriculture

Grain

Mill

Products

Meat and Poultry Processing

Dairy Products

Canning, Preserving, and Freezing

Agricultural Processing

Miscellaneous

Chemicals and Fertilizers

Petroleum

Fabricated

Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

Direct Plus

Indirect

Requirement

(No. of workers)

.090

.180

.237

.190

.137

.155

.218

.211

.123

.120

.094

.094

.178

.098

.094

.058

.036

.106

.146

.080

.110

.087

.097

.162

.171

.077

Sector

Rank

14

22

17

8

25

26

15

10

23

7

24

21

5

1

3

12

13

19

18

4

11

9

2

6

16

20

Multiplier

Sector

Ranka

24

23

25

19

3

1

2

13

5

8

22

21

26

12

10

7

6

15

14

4

11

9

17

18

20

16

1.54

2.02

1.73

1.10

1.16

1.04

1.05

1.07

1.05

1.18

4.29

5.66

5.46

1.56

1.64

1.89

1.93

1.44

1.51

2.66

1.58

1.73

1.36

1.28

1.16

1.43

Sectors which appear to be tied in the rankings were decimal places not included in the table. ranked on the basis of additional demand is internal to processing sectors and the sector undergoing the primary change. The agricultural metals have the largest multiplier values in the Arizona economy.

For example, meat and poultry processing requires

35.2 is man -hours directly respect to their in order derived from multiplying the to produce direct plus indirect effects for this sector are

157.7 man -hours. The result the high multiplier value of

4.48.

The

26

Arizona sectors are ranked with man -hour employment multipliers in

The preceding analysis was carried out in terms of man -hours. Table

17 presents a similar analysis in terms of number of workers. Table

17 was matrix of

$1,000 for final column interdependency consumers. The four of Table coefficients vector of direct technical worker coefficients (column four, Table 15).

16. by the

The total number of workers required by the Arizona economy, directly and indirectly, as a result of a $1,000 change in output for final demand in any one sector are summarized in column one; column two ranks the sectors with the one creating the largest demand for workers being ranked first.

For example, a $1,000 change in final demand for Arizona citrus fruits would create a need for

.21 workers which ranks this sector employment effects.

A $1,000 final demand change in third highest primary in total metals would create a need for

.08 workers and this sector ranks twenty- third.

The highest ranking sectors create the most jobs in the Arizona economy per

$1,000 increase in final demand for their products. The agricultural sectors as a group rank highest in this aspect; the manufacturing and processing sectors rank the lowest.

In column are compared to the direct requirements. The lower the multiplier value, the more the worker requirement is internal to the sector experiencing a change

in

three of

Table final demand. The

17, the direct plus indirect worker requirements higher the multiplier value, the greater are the induced effects on other sectors as compared with the direct worker require-

3U

7

8

9

14

15

16

17

10

11

12

13

18

19

20

21

22

23

24

25

26

1

2

3

4

5

6

Tablei8.

Direct Effects and

Final Demand

Direct Plus Indirect Effects of a

10-Percent Change in on

Man -Hours Required, by Arizona Sectors

Sector

Value of

I0- Percent

Change in

Final

Demand a

Direct

Effect

1,000

Direct Plus

Indirect

Effect

1,000

Sector

Rank b

Meat Animals and Products

Poultry and Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

($1,000)

11,411

716

474

1,243

15,061

7,348

Fruits

Citrus and Tree Nuts

Fruits

Forage.

Crops

Miscellaneous Agriculture

Grain

Mill

Products

Poultry

Processing

159

972

455

593

Meat and

Dairy Products

1,024

4,645

3,918

Canning, Preserving, and Freezing

385

Miscellaneous Agricultural Processing

4,606

Chemicals and Fertilizers

Petroleum

Fabricated Metals and Machinery

2,357

166

6.725

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

Total,

All

Arizona

7,053

9,657

10,525

22.814

10,822

17,283

50,215

63,198

253,825

(Man -Hours) (Man- Hours)

869.7

83.4

102.8

277.6

2,317.5

1,421.2

42,7

250.2

1,415.6

180.9

153.8

318.9

2,831.1

1,513.8

46.3

274.8

1,039.8

1,483.6

581.1

1,419.4

2,334.3

1,862.0

4,622.4

15.728.1

7,203.5

42,823.7

69.5

102.9

49.9

163.4

261.9

48.8

525.0

156.4

6.8

74.9

120.5

161.8

732.5

1,118.1

74.8

852.4

289.7

12.7

1,497.3

2,221.5

1,582.7

2,263.1

4,072.1

2.254.5

5,930.6

18,228.7

10,512.2

58,735.3

24

14

17

26

11

8

9

6

4

7

3

1

2

12

19

21

16

5

10

25

18

23

22

20

15

13 a b

1958 is the base year

Sector Rank of is labor required as a from determined which the by result column of a

10-

10-

3, percent change the percent direct change plus in final in final demand demand. is indirect effects on computed. man-hours ments in the sector actually producing for final consumers. agricultural sectors have low multiplier

Most of values even though the total the direct plus indirect worker requirements per

$1,000 of final demand is relatively high there. This indicates that most of the jobs affected as a result of a change in agricultural final demand are agricultural jobs within the sector undergoing change. Exceptions to this generality are farm dairy products and eggs.

The agricultural processing sectors and primary poultry metals have the and largest employment multipliers as a result of their relatively large induced effects on the rest of the economy for a given change in final demand.

Weighted Employment

Multipliers

It is not likely that all sectors in the Arizona economy would change their level of output by the same dollar amount in the same period of time. The potential for growth may vary greatly between the

26 sectors

For short

-run considerations, a 10-

under

study. percent change in final demand output

(either positive or negative) for all sectors can be used as a reasonable growth variant. This is done in

Tables

18 and

19 for man -hour and worker require-. ments, respectively. In column one of these tables, the dollar value of a

1O. percent change in final demand from the

1958 base is presented. two, the direct effect on employment requirements in each of the

26 sectors is calculated. The direct employment effect is the product of

In column the change in final

31

Table

19.

Direct Effects and Direct

Plus

Final Demand on Number

Indirect

Effects of a

10-

Percent Change in of

Workers Employed, by Arizona

Sectors

Sector

11

12

13

14

15

16

5

6

7

8

9

10

1

2

3

4

17

18

19

20

21

22

23

24

25

26

Meat Animals and

Poultry and

Eggs

Products

Farm Dairy Products

Food and

Cotton

Feed Grains

Vegetables

Parts

($1,000)

11,411

716

474

1,243

15,061

7,348

Fruits and Tree Nuts

Citrus

Fruits

Forage

Crops

Miscellaneous Agriculture

Grain

Mill

Products

159

972

455

593

Meat and Poultry Processing

Dairy Products

Fertilizers

1,024

4,645

3,918

Canning, Preserving, and Freezing

385

Miscellaneous Agricultural Processing

4,606

2,357

Chemicals and

Petroleum

Fabricated

Metals and Machinery

Aircraft and

Primary Metals

Other Manufacturing

Mining

166

6,725

7,053

9,657

10,525

22,814

Utilities

Selected Services

Trade and Transportation

Unallocated Services

Total, All Arizona

10,822

17,283

50,215

63,198

253,825

Value of the

10-

Percent

Change in Direct

Final Demanda

Effect

Direct Plus

Indirect

Effect

Sector

Rank,'

(No. of workers) (No. of

667.5 workers)

1,031.5.

63.7

65.0

213.2

1,780.2

1,091.2

32.9

191.9

53.4

60.1

22.3

76.6

127.3

24.1

262.1

72.4

128.5

112.5

235.8

2,057.3

1,138.9

34.6

205.3

56.1

70.9

96.2

436.2

696.2

37.6

431.1

136.7

6.0

3.1

496.3

682.7

291.6

736.7

1,149.8

768.4

2,182.8

715.5

1,029.7

777.4

1,152.5

1,987.1

1,046.5

2,801.5

7,406.7

3,400.0

21,922.0

8,591.8

4,853.6

29,867.0

5

8

3

1

2

18

26

12

10

11

6

21

14

13

24

15

9

19

20

16

4

7

25

17

23

22 a b

1958 is the base year from which the

10- percent final demand change is computed.

Sector Rank is determined from column three. demand (in

$1,000) and the direct employment coefficient for each sector.

Column

19 final

19, three shows the direct plus indirect effects on employment require- ments of the

10- percent change in final demand. Column three of Tables

18 and

19 takes into account the employment requirements in the sector experiencing the change in final demand and all the induced effects which occur because of interactions in the economy. Column three represents total employment requirements which would be generated throughout the economy for the final demand change in any one sector. These the product of column one

(in

$1,000) times the direct plus indirect employ- ment requirements per

$1,000 as determined from the input -output model.

The sectors of according the Arizona economy are ranked in column four of

Tables

18 and to their total employment effect

(direct plus indirect) for a

10 percent change in final demand. The sector which has the largest employment requirement is assigned rank one.

There are two factors which influence the size of the total labor require- ment caused by the

10- percent change in final demand; these are the size of demand in the base year of

1958 and the size of the employment requirements generated, directly or indirectly, per

$1,000 change in final demand. Looking at sector

6, vegetables, in some detail, shows cent change in final demand would equal

$7,348,000.

This would generate a direct labor requirement of 1,421,200 man -hours (Table

18) or

1,091 workers

(Table

19).

Adding the induced employment requirements gives a total employment requirement of 1,513,800 man-hours or 1,140 workers. In sector aircraft and parts, the

10- total requirements are calculated that a

10 as

-per- percent change in final demand amounts to

.

32

$7,053,000.

The direct employment requirement within sector

19 is

1,483,600 man -hours or

683 workers; the total employment requirements for all Arizona sectors as a workers. result of this change would be

2,221,500 man -hours or

1,030

Note that sectors

6 and

19 are quite similar in the dollar value of a 10- percent change in final demand and in the direct man -hour labor requirement generated by such a change. However, the total man -hour labor requirement resulting from the change in sector

19 is about one

-third larger.

If we look at workers required, which can be taken as a representation of jobs created or destroyed by the final demand changes, the picture changes. Sector

6 would have a total worker requirement of

1,091 compared to

1,030 in sector

19.

The data presented reveal not only the technological aspects of employment required in order to produce, but also job creation patterns.

Thus, sector

6 generates more jobs than sector

19 for a nearly equal change in final demand.

However, the hours than those in

19. on

The trade, workers in sector

6 would, on the average, be employed fewer employment demand. These services, mining requirements and utility sectors have the in Arizona for mostly because of differences in the final demand.

Most of a 10- percent greatest effect change in final are the highest ranking sectors both in terms of man -hours and workers required. The agricultural growing sectors vary in their rankings, dollar value of the

10- percent change in the agriculture sectors rank slightly higher when analyzed in terms of total worker requirements as compared with man -hour requirements. in final demand, this would be a a

If the entire total labor

Arizona economy were requirement effect value to of 58,735,300 experience the of $253,825,000. man -hours or

10- percent

29,867 change

The change would have workers.

33

Foldout Tabla

1

Interindustry Floua of Goods and

Swims by Industry of Orpin and

Datio.Oon, Ariaoaa 8eonany,

1958"

(Thousand of Dollars)

,

1 z s

@

i

4

S

é

=

á a

Producing Seeton bm v

6

s

6

.. w?

é

m

S b a

é z

Purchasing

(Rotors

]H o v.

02

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Meat Animale and Products

Poultry and Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Citrus

Fruits

Forage Craps

Miscellaneous Agriculture

Grain Mill Products

Meat and Poultry Processing

Dairy Products

Canning,

Preserving, and Freezing

Miscellaneous AOl. Processing

16

17

18

19

20

Chemicals and Fertilizers

Petroleum

Fabricated Metals and Machinery

Aircraft and Parts

Primary Metals

21

Other Manufacturing

2

Mining

23

Utilities

24

25

26

Selected Services

Trade and Transportation

Unatloealed Services

27

28

29

SO

Scrap and By-

Products

Net Imports

Maintenance Construction

New Construction

Value Added)

GROSS DOMESTIC OUTLAY

5,276

23,342

630

1,584

36

6

87

2

55

812

314

3,776

5,050

1,323

70,594

500

33,990

143,584

870

1,442

2,974

7

4

5

26

51

12

3

117

163

922

21

1,490

8,117

078

3,224

4.520

116

1,847

12

23

1

31

125

43

1,385

717

344

369

104

11,922

28,055

785

688

1,029

60

924

34

165

35

31

1,986

0,852

189

16,004

28,162

189

14,480

2,462

93

312

3

95

1,542

Ill

IN

0,094

11,844

857

110,578

150,795

291

682

873

32

115

1

882

402

47

50

1,706

725

8248

236

59,731

73,891

94

34

3

7

15

17

4

5

54

27

304

12

1,143

1,700

9

601

149

11

34

59

87

15

20

300

73

1,206

44

7,251

9,899

447

315

30

160

17

115

15

24

1,161

2,973

143

28,862

34,260

296

I547

518

112

7 l06

27

181

17

298

076

11

2,219

99

20,465

23,889

6,632

741

25

65

300

521

1

13

292

103

61

1,023

617

1,598

3,790

81

7,479

23,273

29,778

69

2,931

112

30

3

10

85

1

363

249

4,099

2,169

2,667

9,126

109

187

51,808

10,890

28

4,504

72

168

7

27

792

1

346

383

3,870

2283

9255

216

9,128

46,142

71

188

7

75

31

18

326

193

25

16

22

37

47

86

1

2

1,345

23

1,676

4,161

100

109

77

377

1

327

149

3,757

3,249

778

6971

394

248

32

1,059

3,056

9

21

7997

291

25,964

50,453

1

229

322

15

804

207

5,511

2,010

45

984

162

103

9

813

1,247

28

96

12,685

9,974

139

5,988

38,953

680

2,087

108,091

27

6

.6

9

10

41

3

166

121

1,927

4

197

11

9,498

452

6212

1,946

15

898

240

5,262

5,323

42

28,735

198

53

7

5,55

18,692

0,979

1,560

878

29

2,503

7,046

10

12,207

201

552

22

2,140

4

52,559

1,896

14,076

4,080

253

9,060

9,027

1,620

21,769

104

3,132

1

E9

3

1

11

762

31

1217

178

848

26,680

3,096

2,793

913

11,660

10,359

25

35,915

331

3,557

91

653

3,025

4,047

68,376

8227

344

11212

21,790

55

91,557

422

19

55

1,127

257

721

44

19,290

295

3,862

25,728

15,922

6,697

1

3,822

11,540

13,0405

29,224

246

22,092

2,211

2

17

400

3

18

16

45

3,002

P,092

416

2,008

1,026

228

1,887

504

105

5,952

5,693

1,491

25,511

42

16,603

11,190

30,911

149,128

55

51,724

55,948

16

77

71

852

2,710

8

16,732

10,498

21,743

92,829

9

77

99

328

837

7B7

135

14,445

11,620

13,098

59

172

9

10,599

2

738

216

1,938

297

10,246

67,869

81,116

452

7,554

4,841

4,625

9,935

72,002

84,145

449

222,711

30,810

5,665

22,975

5,438

7,859

1,423

85

5,041

2,359

7,538

1,016

235

174

11246

1,544

25

17,904

9

1,025

202

27,616

10

49

7,416

53,002

4,903

1,500

1,858

41,391

24,459

1,536

2

3,201

841

3,014

103,271

118

097

65,972 12,383

5

49,613

137,059

119,128

141,838

1

3

30

3

251

79

512

17

61

401

63

971

222 90,302 46,539 51,704 79,066 150,164 113,478 113,063 448,999 641,750

01,878

2,52

68,948 98,599 164,918 175,761 314,520 187,501

206631

832,438 394,541

30,175

776,653

130,939 369,075

932,697

3,691

10,039

15,608

26,300

34,030

4,911

13,114

390,245

957,986

3,101

142

450

5,127

89,790

109

4

37

34

36

1,138

176

(-)

320

(-)

18

(-)

82

(-)

30

(-11,826

(-)0,878

11,737

1,031

2,249

1,068

11,006

3,520

32,971

238,838

77,204

(-)5,120

306422

1,720

302

1,300

94

214

423

117

627

584

6,853

12,125

716

2,049

628

9,902

48,280

38,661

3,799

45,955

10,090

1,317

13,037

158

73

90,007

13

67,654

104525

291,508

967,496

50.453

36353

2,52

98,946

98,59

164,418

175,791

514,520

187,502

279,831

632,998

994,541

143,984

8,117

26,055

28,162

150,795

73,841

1,700

9,899

24,260

26,889

16973

61,098

46,142

4,161

M

21

22

23

24

25

26

8

8

10

11

12

13

14

1

2

3

4

8

8

7

15

16

17

18

19

21 30,175

448,752

1,019,988

130,924

27

28

29

583,076

2,778,253

20

Value adder

4,807 1,713,586 7,926382

G,D,O.

R

/Each entry shows the value of goods and services produced by the Arizona sector listed at the left that were purchased by the Arizona Sector listed at the top,

"Value Added" includes inputs from sector 31

(state and local government), sector 32

(federal government), and sector

37

(households). in other words,

1t includes not only taxes, etc., paid to state and federal government, but

0100 hired labor,

Because of complete lack of data, these

00100 s could not be estimated. propretors

9neame, etc. "Value Added" for this purpose is defined as the difference between a sector's gross domestic outlay and inputs from each 50 the sectors

I through

30,

Foldout Table

Il technirai

Coefficients, Arizona Economy, 1958°

0

ú k

Producing Sectors

Q

4. da

Purchasing

Sectors

}f

M w

E k ro a

4 ro o

M h

H co

N

N

1

2

3

4

5

Meat Animals and Products

Poultry and Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

6

7

8

9

Vegetables

Fruits and Tree Nuts

Citrus Fruits

Forage Crops

10

11

12

L3

14

15

16

17

Miscellaneous

Agriculture

Grain

Mill Products

Meat and

Poultry

Processing

Dairy Products

Canning, Preserving, and Freezing

Miscellaneous Agri. Processing

Chemical and

Fertilizers

Petroleum

18

19

20

21

22

Fabricated Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

23

24

25

26

Utilities

Selected Services

Trade and Transportation

Unallocated Services

27

28

29

30

Scrap and By-

Products

Net

Imports

Maintenance Construction

New Construction

Value Added

.022848

.162794

.004450

.011047

.000251

.000042

.000607

.000014

.000384

.005663

.002190

.012379

.035220

.009221

.492342

.003487

.107182

.177652

.366392

.000862

.000493

.000616

.003203

.007515

.001478

.000369

.014414

.020081

.113590

.002587

.026022

.123738

.173479

.004452

.070888

.000461

.000883

.000038

.000422

.008636

.001650

.053157

.027519

.013356

.033353

.003992

.027164

.024430

.036539

.002130

.011505

.243307

.006711

.001253

.095680

.016327

.000617

.002069

.000020

.001207 .000630

.005859 .010226

.001243 .000729

.001101

.001247

.070521 .053675

.078544

.005683

.003941

.009236 .020000

.011823

.0433

.00 828

.000014

.011945

.005444

.000636

Á0Q677

.023104

.009818

.108991

.003196

.020000

.001765

.004118

.008824

.010000

.002353

.003529

.055294

.015882

.178823

.007059

.000909

.060713 .013047

.015052

.001111

.003435

.005960

.006768

.001515

.002020

.036367

.007375

.121831

.004445

.009194

.000817

.004670

.000496

.003357

.000438

.000701

.033888

.086778

.004174

.011008

.063690

.012198

.004165

.000260

.006174

.001376

.005988

.000632

.011083

.032578

.000409

.082524

.001823

.284965

.031839

.001074

.002793

.012890

.002386

.000086

.000559

.012547

.004426

.002621

.043957

.026511

.066515

.162850

.002621

.567315

.001725

.447315

.000607

.047105

.002170 .097612

.001560

.000581 .004074

.000053

.000194

.000152

.000585

.001647

.000019

.007034

.004825

.091052

.042028

.051678

.176833

.002112

.017164

.000022

.007499

.008344

.079537

.045143

.087881

.004681

.237056 .183566 .457954 .568283 .733300 .808914 .672353 .732499

.842440

.761092 .321360

.003624

.197824

A

Each entry shows dollars of direct pur has from the Arizona sector listed at the left by The

Arizona sector listed at the to per dollar of output of the latter sector.

.017063

.040375

.006008

.003845

.00528?

.006489

.011295

.021149

.000240

.000481

.001682

.018024

.007450

.004326

.078347

.046383

.323240

.005528

.402788

.001982

.002160

.015321

.098527

.007809

.004876

.090634

.020871

.020930

.090179

.000416

.001520

.007472

.000020

.006481

.002953

.074465

.064398

.148594

.005768

.514613

.001155

.010885

.004159

.00256?

.000231

.021000

.060252

.000668

.001181

.000026

.005879

.008266

.003979

.020640

.005314

.064462

.051601

.325675

.256052

.002798

.010181

.002262

.002263

.003394

.003771

.015460

.001131

.062594

.045626

.726621

.001508

.153210 .125189

.001486

.000111

.095080

.004568

.060759

.019687

.000152

.009076

.002476

.053179

.053796

.000424

.290405

.001496

.000538

.000071

.056649

.191624

.031231

.015823

.008906

.000294

.025383

.071468

.000101

.123817

.002039

.407305 .472051

.000012

.003357

.000134

.013016

.000024

.319667

.008186

.089260

.024815

.001569

.055103

.027534

.009853

.132370

.000633

.012412

.000006

.000165

.000017

.000006

.000062

.004335

.000176

.005785

.001013

.004824

.151771

.017327

.015604

.005194

.066329

.058928

.000142

.204305

.001883

.314467

449716 m

N N

á

C

1

0 m q tO

N N

.009618

.012867

.217398

.028065

.001094

.036920

.069280

.000175

.132128

.001342

.011309

.000289

.002076

.000101

.000293

.006011

.001371

.003383

.000235

.192879

.001573

.020597

.137214

.084916

.035717

.000014

.000086

.000076

.000025

.000122

.000112

.000014 .000010

.000081

.001906

.000122

.000157

.000215 .000519

.017166

.009732

.000267

.001323

.001260

.000398

.013458 .004285

.000005 .000013

.017262 .026501

.054997 .016598

.065791

.034376

.115445

.146766

.001172

.152942

.010537

.000213

.038643

.018666

.005725

.001449

.025651

.000042

.016694

.011259

.031061

.140897

.000418

.002019

.001836

.000229

.002008

.000507

.000106

.005985

.010869

.000649

.038503

.018018 i

.057575

.007776

+

.002177

.001329

.088952

.011793

.000055

.052008

.056758 l

.000168

.136751

.000069

.477439 .605210 .538838

.709882 .645273 .625371

7

8

9

10

.002777

16

.000547

17

.074825

18

19

.020094

20

.143607

21

.011930

22

.004064

23

.005034

24

.120276

25

.066271

26

11

12

13

14

15

1

2

3

4

5

6

.000320

27

.178749

28

.000149

29

.371357

V. Á.

Foldout Table

Ill

Interdependency Coefficients, Arizona Economy, 1958"

Dollars of

Output Resulting from Final Demand for Products of These Sectors

E

Producing Sectors

4 h e

;

w

4

á

ó w q

^ i

N id

i

dá w°'2

Ñ

; w

'

ÿ

I

1 w a y

'pd

P w q di

M

M ri

W ri

CO

Id

.'

+. d dw

ü

G m d!i a m m

° q r

; z

5 a mz

"

++ air' e k x

á bw

á w

ó m kH

H t

CO

Q

O r+

N

M r!

1; ri

Id

M

N N N

N N

N o

Tr o w

° m

I re N

N d+ O

M re ri eD

N

1

2

3

4

5

Meat Animals and Products

Poultry and

Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

1.000085

.000075

.026954

.000450

1.120050

.329201

.000171

.000001

.000720 1.026911

.000219

.000001

.000144

.152855

1.028418

.000135

.000094

.001203

1.001254

.000073

.000048

.0001 ?5

6

7

8

9

10

11

12

Vegetables

Fruits and Tree Nuts

Citrus Fruits

Forage Crops

Miscellaneous Agriculture

Grain

Mill

Products

Meat and

Poultry

Processing

Dairy Products

.000001

.000001

.163327

.007373

.011513

.000151

.000014

.000001

.000779

308458

.424875

.000793

.000003

.000001

.178922

.010867

.075478

.000301

.000001

.000002

.000001

.001818

.025590

.000616

.000385

.000001

.000001

.008713 .000681

.097176

.000298

.000238

1.003957

.000001

.009515

.000198

.000129

13

14

15

16

17

18

19

20

21

22

23

24

25

26

.000163 .001568 .000424 .000315

.000204

Canning, Preserving, and Freezing

.000014 .000027

.000021 .000032 .000021 .000011

Miscellaneous Agri. Processing

.000339 .006267

.001367

1101066

.000541 .000344

Chemical and Fertilizers

Petroleum

.003292

.000257

.024296

.001345

.010179

.000538

.040303

.002252

.018041

.000682

.012809

.000459

Fabricated Metals and Machinery

Aircraft and Parts

Primary

Metals

Other Manufacturing

Mining

Utilities

.002492

.000463

.002745

.000138

.008976

.006176

.001116

.013942

.000577

.016921

.004845

300479

.000658 .000691

.000874

.004844

.000272

.015754

.014186

.000798

.001925

.005264

.000563

.010257

.003718

.000572

.000761

.003522

.000269

.014255

,002534

.000281

.000573

.015401

.000478

.007537

Selected Services

Trade and Transportation

Unallocated Services

.003478

,016465

.055670

.004992

.027071

.070921

.004414

.064882

.070965

.002970

.009206

.093185

.001988

.007043

.072122

.000105

.001317

,004286

.031656

Total

1.304451 2.061218

1.625580 1.239517 1.230852 1.092668

.000146

.000099

.000351

.000105

.000071

.000788

.000078

.000054

.000208

.000074

.000054

.011511

.000918

.000003

.001631

.303511

.595510

.002028

.001281

.016850

.000216 .002535

.000001 .000009

309138

.002869

.076090 .002853

.005031

.000017

.002871

.000010

002841

.001565

.033457 .004597

.000121

.000086

.000076

.000128

.000096

.000051

.000161

.000139 .000268 .000199

,

.000231 .000270 .000309 .001444

.000001

.000001 .000001 .000001

.000001

.000001

.000005

X0123 .000102 .000125 .000143 .000179 .000206 .000240 .001120

.000057

.000071 .000245 .000118 .000073 .000092 .000096 .000446

1.000001

.000001

.001447

.020477

.000347

.000001

1.000910

.004270 1.000933

.061736

.000261

.000001

.013270

.000166

.000001

.069646

1.013608

.000113

.000001

.000031

.000001

.000985

.008042

1.034954

.000257

.000216

.000022

.000619

.021574

.001812

.005532

.000623

.001001

.013193

.000534

.000185

.000154

.000016

.000462

.016500

.001162

.004831

.000436

.000797

.009087

.000388

.000138

.000119

.000012

.000304

.009931

.000840

,005667

,000358

.000732

.002221

.000192

.000130

.000117

.000013

.000224

.005701

.006367

.007919

.000428

.000933

.003546

.000223

.001618

.003552

.000036

.014588

.037027

.000815

.005573

.000744

.001251

.019190

.000770

.013876

.003782

.009755

.072478

.009829

.002550

.007029

.050196

.005141

.001147

.003747

.042882

.008773

.001642

314731

.047491

.011812

.005605

.056546

.075046

1.168143

.000001

.000001

.097476

.004487

.007779 .038425

1349699

.000381

.002790 1.108590

.000027

.000400

.002790

,000286

.002690

.000512

.008070

.004469

.006248

.000033 1.006565

.002749

.010161

.012432

3243,

.000686

1.023524

.000284

.023247

.026980

1.065484

.000391

304390 .002029

.104793

.008868

.006187

4300364

.002425

.014541

.005061

.003408

.000799

.002882

.001074

.000712

.006729

.000285

.018347

.010202

.112843

.106184

.000001

.000006

.000001

.088755

.005759

.017243

.000027

.040677

.001138

.003317

.000012

.002211

.000028

.002482

.017038

.000005

.000050

.000011

.000872

.001936

.001269

.001161

.000858

.003406

.001018

.003227

.000933

.010062

.028226

.000859

.025763

.001096

.015088

.000880

.014573

.006908

.022393

.014877

.014619

.007736

.014373

.006850

.029918

.008823

129834 .091517

.093019 .080701

.116765 .081518 .106877 .089218

.000001

.000001 .000001 .000001 .000001 .000001 .000005

.000001 .000001 .000001

.000001 .000001 .000001 .000001 .000001 .000001 .000005

300001

.000042

.000110

.000001

.000064

.000392

.000001

.000074

.000385

.000001

.000060

.000282

.000001

.001090

.014910

.000001

.000081

.000338

.000205

.000212

.000188

.000020

.000395

.011040

1.002328

.000681

.000790

.002495

.000203

.003412 1.108142

.001403

.000159

.079766

.007538

.000336

.023009

.007144

1.238535

.099987

.001062

.064652

1.474928

.006956

.005142

.000106

.000225

.000209

.000023

.000259

.030397

.012318

.000113

.000285

.000267

.000030

.000297

.029882

.008072

.000175

.000244

.000221

.000024

.000382

.000181

.000473

.006043

.000296

,009247

.002542

.000308

.000351

.000272

.000312

.000035

.000034

.000438 .000608

.015726

.000448

.004762

.001087

.010113 .019283

.020987 1.183741

.168755 .027411

.024267

1.280630

.021327

.003426

.069692

.070933

.019043

.005702

.073521

.092872

.019508

.003248

.047855

.124709

.051572

.005757

.098368

.090221

.000002

.000079

.000154

.000143

.000407

.000389

.000044

.000399

.000352

.000371

.009035

.001495

.003649

.011319

.001019

.000002

.000101

.000309

.000186

.000477

.000449

.000051

.000496

.002465

.000308

.022644

.014243

.003750

.023284

.000987

.000002

.000103

.000162

.000190

.000544

.000522

.000059

.000533

.000428

.000582

.003712

.003250

.001668

.011671

.000493

.000011

.000466

.000532

.000879

.002545

.002440

.000275

.002474

.001021

.000171

.009200

.008723

.004118

.036876

.001366

.026896

.009506

.088875

.106377

.045601 1.119653

.004350

.058528

.124908 i

1

1

.004754

1.061882

.031952

.020757

,082066

1.045273

.186740

.026931

.165713

.035160 .024691

.015197

.044034

.188570

1.182308

1171764

1.088141 1.187245 1.584250 2.040471

2.160592 1261773

1.478276

1.368759

1.197184 1.453379

1.619585 1.944235 1,489088

1.582086

¡

1.372442

1.406915 L314327 1.340352

R

Each entry shows dollars of direct and indirect requirements for products of the Arizona sector listed at the left ver dollar of final demand for products of the

Arizona sector listed at the top.

8

9

14

15

16

17

10

11

12

13

18

19

20

21

22

23

24

25

26

5

6

7

1

2

3

4

,,

ó

E

Zi yiC"

V

M

Foldout

Table IV

Direct and

Indirect Water

Requirements, Arizona

Economy,

1958'

Acre-Feet of Water Requirements Resulting from Final Demand for

These

Products

0 i

A

1+ tr

V

11111 a ei

>

ÿ

aa

ee i

N a

$ u

ì0+

.4

°° o

"ei

4.4.4

Et h

1 p it d

412 itil Eil t

00 lit ri

41

Recurs

Requiring Water ri o nl

N ri i

'IP ri kd

M tD ri

9

0

1

2

3

4

5

6

7

8

1

2

3

4

5

6

7

B

9

0

1

2

3

4

5

6

Meat Animals and

Products

Poultry and Eggs

.407043 .000183 .000070 .000089 .000055 .000030

.008431

.ß00000b .000000b

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

.000019 .000182 .259342 .000036

1.134413 13.855082

6.433208 43.283028

.000024

.050631

12.566668

.000012

.007365

.000006 6.438123

Fruits and Tree Nuts

Citrus

Fruits

.000010 .000139 .000030 .000020 .000010 .000010

.000011 .000011

.000011 .000011

.000011

Forage Crops

7.666200

.036564 8.398194 .085333

.315093 .031965

Miscellaneous Agriculture

Grain

Mill

Products

Meat and Poultry

Processing

.047250

.000220

.054204

.008135

.069642

.001445

.163995

.000012

.622759

.000006

.061618

.000004

.000002

.000009

.000004 .000005

.000003 .000002

Dairy Products

Canning,

Preserving, Freezing

.000002

.000001

.000015

.000001

.000004

.000001

.000003

.000001

.000002

.000001

.000001

.000000b

Miscellaneous Agri. Processing

.000007 .000124 .000027 .000021 .000011 .000007

Chemical and

Fertilizers

.000099

.000733 .000307

.001217 .000545 .000387

Petroleum

Primary

Metals

.000005

Fabricated Metals and Machinery

.000007 .000018 .000014 .000041 .000011 .000007

Aircraft and

Parts

.000002 .000003 .000003 .000003 .000002

.000001

.000086

.000027

.000208

.000011

.000163

.000045

,000359

.000014

.000142

.000009

.000107

Other Manufacturing

Mining

Utilities

.000024

.000020

.001885

.000121

.000085

.003553

.000042

.000040

.003308

.000046

.000083

.002154

.000031

.000040

.002994

.000133

.000070

.001583

.

Selected Services

Trade and Transportation

Unallocated Services

.000035

.000165

.000558

.000050

.000271

.000711

.000044

.000650

.000711

.000030

.000092

.000934

.000020

.000071

.000723

.000013

.000043

.000317

.000059

.000025

.014773

.000043

.000018

.033165

.000032

.000014

.008754

.000030 .000374

.242377 .000088 .001032

.000014

.000000b .000015

.000412

.000324

.484463

12.773867 .709166

.000000b

.128581

3.202400

.000000b

.000725

.120074

9.950598 .000010 .000010

.000011 11.164712

.067919

.131228

.000011

.200424 46.981533

.395639

3.269026

.085042

6.495776

.000007 .000005 .000003

.000002

.000003 .000002

.000002

.000001

.000002

.000001

.000002

.000001

.000001

.000002

.000001

.000001

.000012

.000651

.000036

.000016

.000003

.000187

.000726

.000009

.000498

.000023

.000014

.000002

.000149

.000114 .000079

.000078

.000057

.002914

.002054

.000038

.000098

.000026

.000070

.000503

.000006

.000300

.000017

.000016

.000002

.000137

.000019

.000028

.001080

.000011

.000038

.000430

.000004

.000172

.000007

.000023

.000002

.000174

.000031

.000033

.001842

.000016

.000148

.000476

.000006

.000308

.000011

.000010

.000011

.000006

.000060

.000011

.046234 4.575303 4.165959

.051538 .028755 .036907

.019815

.000149 .000736

.000019

.000035

.000002

.000288

.001118

.000016

.000016

.000003

.000234

.000166

.000113

.012358

.000027

.000001

.000008

.000084

.000006

.000008

.000005

.000133

.000058

.000042

002480

.002855

.000004

.010852

.000001

.000054

.000307

.000010

.000013

.000005

.000217

.000244

.000126

.004702

.000056

.000567

.000752

.000102

.001131

.001064

.000149

.001301

.001170

.110575

.000269

.453734

.053415

.021257

.000155

.000053

.000061

.042889

.000245

.000736

.000008

.000006

.000004

.000636

.000223

.000161

.003070

.000078

.000917

.000817

Total

9.258064

13.96::60

15.167271 43.437564 13.559865

6.541807

10.169499 11.797515 47.077476 10.252254 12.898250 5.574990

7.553903 .811140

Each entry shows the acre -feet of water intake required by the

Arizona sector listed at the left per

$1,000 of final demand for products of the

Arizona sector listed at the top.

Positive, but less than

.0000005 acre -feet.

.002048 .001169

,00000ßb .000000b

.000717

1.408105

.000395

.103474

.000049

.000022

.003199

.000052

.000024

.002146

.000008

.000004

.001878

.000126

.001015

.006283

.000088

.000809

.000894

.000032

.000498

.000123

.040930

.012407

.000278

.000060

.000033

.000012

.000459

.032164

.000016

.000007

.000004

.000602

.000131

.000129

.003018

.000069

.000932

.001071

.000077

.022001

.000312

.116499

.109189

.002006

.000104

.000061

.000029

.020207

.000814

.000007

1,6.139

.293155

.033246 .037558

.000010

.000011

.001971

.000010

.000011

.003004

.000705

.000004

.000002

.002512

.000002

.000003

.000002

.000002

.000001

.000008

.000001

.000005

.000075

.000333

.020031

.000010

.000003

.000004

.003216

.000030

000147

.018663

.000060

.000756

.000263

.001811

.004479

.000034

.000698

.000711

.003999

.000057

.000737

.000931

1 a di

:

M

I.1 di

01 ri

Á li

:

Ai o

N a

«

4

G

i

G

r

N

N

N

M

N

ÿ wá

N

N

N fl

M

1

,:$

18

4

« g i t0

N li

{

.71

000066

.000000b

.000031

.002399

.000057

.000026

.002988

.000109 .000081

.000000b .000000b

.000316

.010311

.000036

.004966

.000006

.000010

.000011

.003473

.002467

.000002

.000003

.000003

.000001

.000006

.000042

.000003

.000231

.005277

.012067

.000259

.001187

.004097

.000033

.000480

001250

.033404

.000010

.000011

.002816

.001807

.000003

.000003

.000002

.000001

.000008

.000228

.000007

.000067

.000005

.275297

.000182

.024806

.010830

.000058

.000986

.000904

.321102

.000006

.000010

.000011

.051162

.095552

.000003

.000006

.000003

.000001

.000009

.000182

.000006

.000001

.000012

.000474

.000009

.000014

.000027

.000011 .000005

001888

.003599

.010252 .000210

.004029 .188246

.005684

.000095

.000891

.001066

.181630

.000006

.000010

.000011

.003802

.002166

.000006

.000004

.000003

.009576

.000044

.000586

.001252

.215119

.000094 .000110 .000126

.000588

.000000b

.000000b

.000000b .000000b

.000045

.003072

.000052

.003872

.000061

.003030

.000283

.018771

.000006

.000010

.000022

.003708

.000987

.000003

.000005

.000004

000002

.000008

.000011

.000007

,000026

.000006

.000681

.000098

.000150

,235127

.000048

.000320

.001871

.246311

.000006 .000006

000010

.000010

.000022

.004741

.001980

.000022

.004835

.000004

.000006

.000004

.000002

.000010

.000074

.000006

.000066

.000061

.000700

.000202

.000145

.005656

.010640

.000822

.001660

.030851

.001038

.000004

.000006

.000005

.000003

.000011

.000013

.000012

.000011

.000014

.000311

.000101

.000072

.007384

.000208

.010474

.001889

.030656

.000032

.000050

.000123

.021873

.003409

.000017

.000030

.000024

.000012

.000049

.000031

.000003

.000027

.000037

.000769

.000319

.000201

.005185

.000152

.000441

.011847

.064273

1

2

3

4

5

6

15

16

17

18

19

20

21

22

23

24

25

26

10

11

12

13

14

7

8

9

Foldout

Table V.

Direct and Indirect Man.Hour Labor Requirements, Arizona

Economy,

1958a

Man -Hour Requirements Resulting from

Final Demand for Products of These Sectors

Sectors

Requiring Labor

:

4

4

.y

®

Co i+ b

.

GG

®

M

Z. n i

3

%

0.1

G

Q

4 r!

.S

ü b

Q ea

M

W

N i

A a

.i

P+

N a

..Q1 a

/7

N k

N

!G k a q

W a

G to g

'k a

.

N

1

2

3

4

5

6

7

8

9

10

11

12

13

Meat Animals and Products

Poultry and Eggs

Farm Dairy Products

Food and Feed Grains

Cotton

Vegetables

Fruits and Tree Nuts

Citrus

Fruits

Forage

Crops

Miscellaneous Agriculture

Grain Mill

Products

Meat and Poultry Processing

Dairy Products

14

15

16

[7

18

[9

20

21

22

23

24

25

26

Canning, Preserving, Freezing

Miscellaneous

Agri.

Processing

Chemical and Fertilizers

Petroleum

Fabricated

Metals and Machinery

Aircraft and Parts

Primary Metals

Other Manufacturing

Mining

Utilities

Selected Services

Trade and Transportation

Unallocated Services

76.224885 .034298

130.481616

.013033

.000116

.016692

.000116

.010289

.016274 .156231 222.826483 .031246

6.020285 73.535329 34.144012 229.723046

.020397

.268720

154.070744

.00554

,01045

.039091

.011128

.021482

.073405

.008003

.015406

.176020

.005945

.011717

.005640

.011717

.069968

45,288823

.000349

.236254

.353906

.016463

.000116

.277961 110.476400

.046462

2,571272 67.796821 3.763872 16.996617

.193214

.001048

.622536

.383455

.001980

.616460

.218823

.011650

.339585

.637289 7.473463 1.026856

.009222

.018661

.016977

.009756

.020831

,011392

.012271

.000116

.026689

.012732

.010594

.022133

.015860

.020427

.000116

.027123

.05472?

.015167

.000116

.031029

.026358

.017606

.000116

.038841

.016306

.020579 .023551

000116 .000116

.044699 .052577

.020551 .021444

.110059

.000582

.243026

.099625

1

2

3

4

5

.000269 .003761 .000806

.000193

.000537 .000269

194.18664

.000289 268.647328

.000269

.000269

.000193

.008328 .000269

000193

3.335163 .002321

.000967

.001612

.007253

.593979 .013432

.000257 10.471893 .007208

002832

,000269 .000269

.000193

.000269 .000269

.000193

.000269

.000193

.000269

.000193

.000269

.000193

.000269

.000193

.000269

.000967

.001343

6

7

.003257

24.954802

.000257

.000257

.119024 27.337569

.000257

.277773

.000257

1.025682 .104050

1,279551 1.467848 1.885919 4.441029 16.864456 1.668640

.000257 257.674416

.221088

.000257

.652415 152.932979 10.641242

.000257 .000257

.150499 14.893400 13.560914 .173876 .379226 .133233

.000257

.006417

.000257

,009779

.000257

.011306

.000257

.009167

.000257

.166542

.000257

.012376

.000515

.012070

.000515

.015432

.000515

.015737

.002832

.071200

B

9

.561477 20.720712 3.680984

.030042 .014533 .009656

3.553691 10.714004

.015923

.012729

2.30249

.008096

175.907092 1.395653

.005511 50,473630

.778699 .999448

.379374

1.373947

.575650

2.956868

.393566 5.110646

.335984

.709149

.019090

.009998

.068030

.005170

.066815

.005511

.048940

2.587563

.008535 .008827

.059658

.015021

.026726

.006974

.053626

.009071

.028114

.009266

.092326

.042868

10

11

.005313 .027904 .010592

.013548 .008375 .0045a9 .009043

.006510

.004856 .004574 .056935 36.937168 .013407

.157257

,312050 .178088

.007460

.007917 .010029 .008586 .016644

.012351 .014322

.016785 .019142

.089554 12

.010898

.104835

.028348

.021061

.013639 .007050 .014442 .010296 .007956 .007822 .237483 .186536 74.119027 .417734 .413656 .227855

.012569

.013973 .017851 .014776 .018186 .020860 .026008 .030020 .034900

.163136

13

.001776

.038642

.003426

.714358

.002685

.155821

.004061

.121510

.002665

.061667

.0013

6

.03922

.002792

.070558

.002030

.052662

218379 1.653500

.010175 .053252

.675238

2.673554 1.196774

.021301

.089163

.027002

.855076 1.431141 1.094550

.018173 .071742 .046007

.385330 .954974

.749166 2.193534 .574902

.391824 .855395 .747001

.10fl757 .138409 .145350 .167858

.120319 .0591

3

.131047 .091712

.027864 .067163

.052:99 .115850 .045798

.0344

4

.060242 ,047965

.370204 1.880283

.930203 1.335127

.653285

1.180539

.709928

.794336

.474993

.531697

2.077051 1.779270 1.225516

.014120 .059037

.027830 .057605

.027523 .0489

8

.054633

.039699

1.378507 2.598677

2.419453 1.575240 2.189241

1.1575

0

2.131035 1.509509

.352236

1.011509 .682006

.001523

.034652

.658786

.033258

.075305

.044053

.298186

.019645

.306769

.001650

.004568

.025533 1.662846

.378184 2.456236

.014531

.874723 1.224489

.090029

056150

.032268

.891734

.156499

.075288

.478230 2.588054

.022817 .078785

.789540

1.347331

1.814052

.439158

1.499076

.003426

.045595

.185078

.011324

.415946

.225914

.042850

.004187 127.725624

.087048

.036037

.313351 1.417090 116.668712

2.649862

.674044 1.617611 1.789755 70.680324

.020271

.678811

.266932

,069871

.015481

.313738

.180479

.204980

.014412

.374970

.214134

.19420?

.907505 3.806691

3.474519 2.034839 1.965383

.029161 .087891

.112140 .090040 .706811

.002538

.045025

.732353

.002919

.020523

.165509

.047544

6.017415

.005583

.014689

.006472

.012195

.007487

.045431

.056533

.060755 .282005

15 e23350

.163519 .028392

.067729 16

.023043

.034895

.006770

14

17

1.397052

3.501366

.314470

2.995987

.573974 1.422565

.683631

1.834866

18

19

.938119

4.099482 4.030027 2.830405 159.644871 3.272762

1.526534 3.140190 1.574006 4,973271

.526118 1.260351 .825909 17.266643

2.804634 131.031267

Ï.104262

.100988

.050443 .139766

3.275337

2.924567

.916295 1,525019

.003807

.033154

.093070

.003045

.043543

.500043

.004441

.049926

.400871

1.043206

.031635

39.684932

.445634

.008037

.527586 171.348310

.006295

12,333951

.013303

3.557805

.011719

1.429833

.196255

.605551

2.817678 3,439050 2,245143 2.207363 4.594718

2.728559

3,978903

2.099019

1.832055

2.359741

.143247 1.502726 260,523373 .223390

3.890885 88.764080

.534705

.004314

.089304

.017733

.736332

.223648

.608620 1.160489

;

.219604 .225682 .100384 .247829

2.995931 7.920274

4.130608

7.003266 171.952980 4.135983

5.399768 3.791970

.868688

1.539729 2.542411

1.163422

1,271473 284,003878 5.417802 4.064488

20

21

22

23

24

5,157089 8.479049 20.322030

2.883459 2.205975

6,345447 8.083805

8.088820 10.621528

1.34240 3.061679 2.201590 1.173617 4.613973 17.711068

35.344145 40.665985 28,664517 29.134967 25276781 21.828595

23.02789'

14.988914 30.810355 27.837003 18.331860 10.007853 25.704320 327.395413 13.792119

25

8220699 3.608253 8.261277 5.721502 4.887829 5.413178 8.553986 12.103196 13.309252

9.291685 12.182186 10.169356 8.085173 10.585851

14214735 10283681

12.125194 14.237418 22.285229 18.888504 21.493818 134.763289

26

Total

124.053072 252.672875 324.422116 256.563063 187.976515 206.021449 291.495983 282.731817

164519115 203.260380 158.038482 157.702990 285.373640 194.318705 185,076000 122.916542

76.853732 222.644979 314.973523 163.895413 215.025710 178.492681 208,328506 343.147488 363.014250 166.338080 a

Each entry shows the man -hours required by the Arizona sector listed at the left per

$1,000 of final demand for products of the

Arizona sector listed at the top. k

ü

E a z

0

Was this manual useful for you? yes no
Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Download PDF

advertisement