05 59\5 A 1977 Input-Output Model for Clatsop County, Oregon 102119144.t. cP DEC 1979 LIB RARY N fr OREGON STATE UNiVERSITY Za Seal:4 a Special Report 525 December 1978 Agricultural Experiment Station Oregon State University, Corvallis CONTENTS Page Summary • Introduction Objectives Firms in the Clatsop County Economy Selection of the Sample The Questionnaire Data Collection Study Results The Transactions Table Total Sales Employment The Direct Coefficients The Direct-Indirect Coefficients The Multipliers A Note About Applying the Results References Appendix 1: Clatsop County Processing Sectors Appendix 2: Questionnaire Appendix 3: Mathematics of Deriving Input-Output Coefficients • • • 1 1 2 2 6 6 7 7 14 16 18 23 24 29 32 33 36 • 40 Acknowledgments The work reported here was supported financially by the Oregon Agricultural Experiment Station, the Clatsop County Board of Commissioners and the Pacific Fishery Management Council under Contract Number 77-10. We are indebted to the many individuals representing Clatsop County businesses, governmental bodies and other organizations who provided the basic data without which this work would have been impossible. In addition, we would like to acknowledge the help received from Jim Bergeron, Les Miller, Bill Rompa, and Bill Zelenka. Grant Blanch and Ed Schmisseur provided helpful comments on a draft of this report. Authors: Thomas M. Carroll is a graduate student and former research assistant and Herbert H. Stoevener is professor, Department of Agricultural and Resource Economics, Oregon State University. SUMMARY This report presents the results of an input-output analysis for the Clatsop County economy of 1977. Financial information was collected from 292 firms in the county. The local economy was divided into 26 sectors. The financial information from the sample was used to estimate the economic interactions between these sectors and their relationship with the outside world. Sector multipliers ranged from 1.5 to 3.2. A multiplier estimates the economic impacts upon the entire county caused by a one dollar change in final demand in that sector. A 1977 INPUT-OUTPUT MODEL FOR CLATSOP COUNTY, OREGON Thomas M. Carroll and Herbert H. Stoevener Introduction Input-output models have been available since the 1930s as a technique to describe the structure of national economies. More recently, the methods for deriving these models have been changed to make them adaptable to regional and local economies. These models, especially at the county level, have been used to estimate certain economic impacts from a number of resource development or conservation options. This is a report on such a study for Clatsop County, Oregon. The Objectives The 1977 Clatsop County input-output study was developed to provide a description of the Clatsop economy which would be useful to provide estimates of economic impacts in the county caused by certain changes facing the county economy. A 1968 study by Collins [2] also was developed for these same purposes. The present work is designed to update and replace the Collins model as a tool for local planning purposes. The tasks which needed to be performed consisted of (1) preparing a list of all non-household economic entities in the county (businesses, government agencies, and non-profit organizations), (2) selecting a sample of these from which data were to be collected, (3) constructing a survey instrument or questionnaire to aid in the data gathering, (4) collecting the data, and (5) carrying out the analysis. For simplicity we refer to all of these entities as "firms". 2 Firms in the Clatsop County Economy A list of firms was compiled by using the Clatsop County phone book, a Department of Labor listing of firms covered by unemployment insurance, and state listings of commercial fishermen and farmers. From these sources, 1,978 firms were identified in the county. The Labor Department information indicated employment in Clatsop County at 11,733, including part-time and seasonal employment. To facilitate the eventual input-output model construction, all the firms had to be grouped into certain economic sectors. This study utilized basically the Collins [3] sector classification system. There were two major exceptions: in contrast to the 1968 work, the current model includes households and certain Federal agencies in the endogenous part of the model so the role of these sectors in the local economy is more realistically portrayed. Appendix 1 has a listing of the sectors for the 1977 model along with examples of the type of firms assigned to each sector. Selection of the Sample Because it would be too expensive to survey the entire population of firms, a stratified, weighted random sampling procedure was developed to select a proportion of the population to survey. The sampling was stratified according to the previously defined sectors. Since the sector definitions for this study were similar to those used in the Tillamook County study [4], the standard errors from the Tillamook County work were used to allocate sample sizes to the various sectors. From Cochran [1] the sample size by sector was estimated by the following formula: 3 N S h h SSh Sh nt EN1S1 where SS h n N t h = the sample size for sector h = total sample size = number of firms in sector h S h = standard error for sector h N = number of firms in sector i (i = 1, 2, ... 16) i S = standard error for sector i (i = 1, 2, ... 16) i and C n = —t = 400 t Co where C C o = cost per interview = $20 t = budget for interviewing = $8000 A set of initial sector sampling sizes was derived, using these equations and the standard errors from the Tillamook County Study. They are presented in the first column of Table 1. The sample distribution developed by the method was inadequate. This was because the standard errors only described the variability in total sales and not the variability in sales or purchase patterns. It was observed that many sectors (16 of 26) had seven or fewer observations allocated to them by using this method; statistical inferences from such small sub-samples seemed inappropriate. The information from Cochran's formula [1] was still used to indicate potentially high variability sectors. However, the final allocation of observations among the Clatsop County sectors was based on the judgment of the research team. The final sample distribution is shown in the last column of Table 1. 4 Table 1. Sample Size by Sector for Clatsop County, Oregon, 1977 Sector 1. n (N S /ENS i ) t h h Final Distribution 25 Logging —114 7 2. Wood Processing- 3. Gillnet Fishermen 20 4. Troll Fishermen 20 5. Combination Fishermen 6. Other Fishermen 7. Salmon Processing 8. Other Fish Processing 9. Agriculture 6 15 10. Manufacturing 5 14 11. Lodging 5 20 12. Restaurants 10 26 13. Service Stations 4 14 14. Automotive 5 12 15. Transportation 16. Communication- 17. 7 12 12 14 3 16 15 .-- 1 6 Professional 2 20 18. Financial 1 6 19. Construction 28 30 20. Retail and Wholesale Products 38 50 21. Retail Services 116 50 22. Education 4 10 23. County Government N/A 1 24. City Government N/A 6 25. Federal and State Agencies N/A 399 16 437 5 The sample size derived by these means was 424. An additional 13 firms were drawn as replacements. During the final weeks of interviewing nine of the additional 13 replacement firms were interviewed in sectors with low response rates. During the coding of the interviews it was discovered that all the firms interviewed in the "Other Fishermen" sector fished, in part, for salmon. Those interviews were reassigned to an appropriate sector and four more interviews were arranged for this sector. Thus, the total sample included 437 firms. To account for the difference in firm sizes, a weighting system was developed. The firms in each sector were assigned a weight using the firm's total employment as a proxy for its size. In each sector, the firms were alphabetized and a cumulative range of numbers was assigned to each firm according to its number of employees. For example, if the first firm had 15 employees it was assigned numbers 1 through 15, if the second firm had one employee it was assigned number 16, if the third firm had 120 employees it was assigned numbers 17 through 136, and so on. The total number of employees in a sector defined the last number in the series. Random numbers were selected between 1 and the last number for each sector. A firm was selected for the sample if the random number chosen was assigned to that firm. The probability that a specific firm was selected in the sample on any one random selection was in direct proportion to its size and is equal to its employment divided by total employment in the sector. In this manner, the larger firms in the economy had a larger probability of being randomly selected. Employment information was not available on firms in the four Fishermen sectors nor for the Agriculture sector. Samples were drawn for these five sectors in a simple random procedure; each firm had an equal chance of being selected. In the four Fisheries sectors, firm size does not significantly vary within each sector. Information describing firm size in Clatsop County agriculture was not available. 6 The Questionnaire The fundamental data required for any input-output model pertain to the input requirements of firms in one sector from all other entities which supply them with goods and services. For a small area, such as Clatsop County, the focus is on the flow of goods and services among the various economic sectors in the county as well as on the relationships of these sectors to the rest of the world, i.e., their exports and imports. Data of this type are not available from published sources. Therefore, they have to be collected from the concerned firms in the study area. How the list of firms and the sample were derived was discussed for this reason. To aid in the collection of these data and their compilation a questionnaire was constructed. The questionnaire was administered in a personal interview to each respondent in the sample. The questions were concerned with the values of the respondent's total sales of his goods and/or services and their distribution, the sectoral distribution of the respondent's purchases, toth for current use and investment purposes, and with inventory changes, depreciation, and tax payments. A copy of the questionnaire is provided in Appendix 2. Data Collection Beginning January 9, 1978, a team of four interviewers began collecting data in Clatsop County. Each firm in the sample was sent a letter explaining the needs of the study. The firms were then contacted by telephone to arrange interview appointments. The interviews lasted from 10 to 60 minutes with an estimated average of about 25 minutes. Interviewing in Clatsop County took six weeks. Many firms had to be interviewed in Portland because the Clatsop County establishment was a branch of a larger firm and did not keep its own accounts. 7 Table 2 presents a description of the sample and surveying results by sector. The total sample included 437 firms from which 292 useable questionnaires were completed. The 292 firms successfully interviewed represent 14.8% of all the firms in the economy, but 61.7% of the employment in Clatsop County. This outcome is the result of the weighting system used in sample selection. Of the 145 firms in the sample for whom no interviews were completed, 40 refused to be interviewed, 12 were interviewed but the information they supplied was too incomplete to be of use, 28 firms referred the interviewer to supervising offices out of the county which were too costly to contact, 23 were not actual businesses in 1977, and 42 firms could not be located after reasonable effort. The refusal rate was 9% of the total sample; the success rate 67%. As the survey data pertain only to a sample of firms in Clatsop County they had to be expanded to derive estimates for the total population of firms. The entries in the last column of Table 2 were used for this purpose. The expansion factors were computed by dividing 100% by the percent of employment represented by the interviewed firms in each sector. In the five sectors (the four Fisheries and Agriculture) where employment figures were not available, the expansion was accomplished by multiplying the sample estimates by a factor based on the percentage which the interviewed firms comprise of all firms in each sector. Study Results The Transaction Table A central part of any input/output model is the transactions table. It provides a means to organize the survey data in a manner which facilitates the derivation of multipliers and other measures often used in economic impact analyses. The transactions table is derived by reconciling with each other the various es timates of sales and purchases by sector derived from the survey data. The results are shown in Table 3. 8 C 0 ut 1- r0 0 O. u X RS W 4 E - 4-) 0C LL E CIS C >r• Ur C OJ 3 S- O. CU E 0- u.t 0 cr N. CS 41 on on. 1) •) h C•I • • • •n• 1. <I.. NV N. c.,1 0 'NJ O • • ON •-• •-• •-• :0 NI 7 0 7 N. CO 0 ,.0 NJ v . 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En C cs, • .0 o -.LsSCU _C 4-, CD cG • r CU 4-) 47-, C 00 E • • 0 >, =0 41 r c11 CU a) 4-, C 8-• Ca- 4-7 v, 4,1 N C 4-,0.1 0I 4.4 C) C 4-, C .-- V o C '"' 4-, E CU 4-) • e• 0 r- C00 4, •,• ,13 C) C cf) C 0 C. .0 > Ia) JC 4-, C •4- 3 O i > 4-, CC 0 .- 3-, 3- a C 0 C) • .7 a) E. i- ‘.1 n- mi 4..) 0.7 0_ wt 0 CI > C ♦, 0 ..-- V/ r .73 •1-• 0 •- f.,O C- C 0 0 L .-- CO •-• >, (1 ro 0 r .-'CO ..-) L> O on 0 0) C 4) r ea v, 50e0 .-J L., >, C) 0 O C r- 44., 1/1 5., 0 C 0 C C 0 4-, 0 C0 C) C) 77 0 •.... 0 L 0 5- re, cc 1....J L.) L.) U. < t--- (..., C. U.. L.) 0: 4-7 R:1 r CE ri CE E C CC C ., •-” ra- cu r40 .= RI ..-n ,1 4-1 O -,- 0 C..% .- V, 0 CU 0. L r I- La.- 4-4 I- C) 9 Table 3. Transaction Table for Clatsop County, Oregon, 1977 (in thousands of dollars) Purchases 2 1 Sales Logging 1. Logging 2. Wood Processing Wood Processing 503 9509 4587 271 7 3 4 5 6 Gillnet Fishermen Troll Fishermen Combination Fishermen Other Fishermen 0 Salmon Processing 0 0 0 0 1 0 0 0 0 12 0 779 3. Gillnet Fishermen 0 310 0 4. Troll 0 0 0 0 0 0 981 5. Combination Fishermen 0 0 0 0 0 0 2248 6. Other Fishermen 0 0 0 0 0 7. Salmon Processing 0 0 0 0 8. Other Fish Processing 0 0 0 1 0 0 0 17 0 0 0 0 0 0 9. 10. Fishermen Agriculture Manufacturing 0 0 0 1 0 155 25 0 0 2 0 0 35 0 80 0 0 2 15 * 11. Lodging 3 3 12. Restaurants 4 29 21 0 13. Service Stations 80 153 103 128 152 253 3 8 14. Automotive 165 45 15. Transportation 663 247 0 16. Communication 10 42 * 17. Professional 33 39 1 18. Financial 113 205 7 19. Construction 0 20. Retail & Wholesale Products 365 524 344 21. Retail Services 194 117 81 22. Education 1699 1796 23. County Government 211 223 24. City Governments 1277 1384 1 25. Households 12598 18395 180 26. Federal & State Agencies in the County 593 2016 27. Federal & State Agencies outside the County 944 28. Businesses Outside the County 29. Households Outside the County 30. Inventory Depletion 31. Depreciation 32. TOTAL PURCHASES 67 9 25 451 4 44 0 3 14 10 3 102 29 34 126 14 4 0 0 344 309 361 160 73 429 23 19 1 14 3 30 26 0 2 6 12 1 * 1 * 2 * 10 2 46 304 1726 4211 583 18 14 16 6 75 3209 29 22 26 9 120 14032 108973 74 95 275 429 1545 0 11951 0 0 0 0 * 4 4 0 0 0 0 1359 9727 215 193 4043 358 47 39451 168928 1116 1234 8091 6173 6909 0 0 * 403 * Denotes an entry of less than $500 which was rounded to zero. (continued) 10 Table 3. (continued) 8 9 10 12 11 14 13 Sales Purchases Other Fish Processing Agriculture Manufacturing Lodging 1. Logging 0 0 2. Wood Processing 0 0 3. Gillnet Fishermen 0 0 0 4. Troll Fishermen 0 0 0 5. Combination Fishermen 3464 0 0 6. Other Fishermen 5992 0 70 0 7. Salmon Processing 0 0 8 0 8. Other Fish Processing 719 40 9. Agriculture 0 10. Manufacturing 11. Lodging 101 8 1101 0 1 0 3 0 Restaurants Service Stations Automotive 2 0 0 0 0 5 0 * 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 254 0 0 109 30 13 0 0 0 0 12. Restaurants 13. Service Stations 54 69 196 20 0 0 0 4 0 0 88 =0 4 0 * 7 17 4978 522 89 136 14. Automotive 24 70 19 5 6 15. Transportation 95 23 56 168 2 16. Communication 117 21 64 259 71 53 72 48 * 43 17. Professional 15 25 40 8 61 13 18. Financial 9 112 109 169 98 72 93 19. Construction 7 42 83 44 35 4 19 20. Retail & Wholesale Products 1757 1186 474 585 2390 361 635 21. Retail Services 141 100 362 277 244 184 83 22. Education 116 57 90 154 61 13 24 23. County Government 24. City Governments 25. 14 7 1 19 7 2 3 207 55 82 144 132 23 39 Households 9779 1244 3699 1626 6239 2231 3038 26. Federal & State Agencies in the County 1057 31 537 82 774 110 951 27. Federal & State Agencies Outside the County 1682 49 854 131 1232 176 1514 28. Businesses Outside the County 32653 792 9653 1177 3572 20200 14357 29. Households Outside the County 106 14 71 827 172 23 13 30. Inventory Depletion 0 15 Depreciation 618 59730 31. 32. TOTAL PURCHASES 0 0 0 0 352 248 352 519 70 102 4372 16784 6115 16042 28611 21697 2 * Denotes an entry of less than $500 which was rounded to zero. (continued) 11 Table 3. (continued) 15 16 17 18 Transportation Communication Professional Financial 19 20 Construction Retail & Wholesale Products 21 Retail Services 0 0 22 23 Education County Government 1. Logging 0 0 0 0 0 2. Wood Processing 0 0 0 0 201 3. Gillnet Fishermen 0 0 0 0 0 0 0 0 0 4, Troll 0 0 0 0 0 0 0 0 0 5. Combination Fishermen 0 0 0 0 0 0 0 0 0 6. Other Fishermen 0 0 0 0 0 0 0 0 0 7. Salmon Processing 0 0 0 0 0 0 0 0 8. Other Fish Processing 0 0 0 0 0 235 * 0 0 9. Agriculture 0 0 0 0 0 334 0 0 0 10. Manufacturing 0 0 0 * 29 * 13 * 14 11. Lodging 12. Restaurants Fishermen 19 0 0 1 2 4 0 5 211 1 3 0 30 10 0 16 44 217 6 23 17 46 29 * 24 7 6 757 969 90 112 143 86 202 0 146 13. Service Stations 1694 88 14. Automotive 85 10 2 0 396 478 180 15. Transportation 13 11 10 0 46 239 10 16. Communication 138 27 96 72 179 1267 190 82 182 17. Professional 85 30 109 12 85 94 99 123 286 18. Financial 11 34 150 17 469 29 154 194 2 19. Construction 238 1058 4 0 3402 55 255 130 96 20. Retail & Wholesale Products 2233 59 329 51 1721 4031 1233 995 491 21. Retail Services 1663 119 208 99 1140 481 401 225 210 22. Education 132 9 14 40 63 298 58 3048 1 23. County Government 24, City Governments 25. Households 26. 16 1 2 5 8 35 7 22 109 15 34 33 67 404 53 17 5129 1928 7478 6120 9078 13708 9776 11426 1930 Federal & State Agencies in the the County 472 26 262 147 553 2056 1270 450 153 27. Federal & State Agencies outside the County 751 42 416 233 880 3273 2022 715 243 28. Businesses outside the County 5518 9545 3530 1355 8832 79564 3091 3905 682 29. Households outside the County 1611 1 165 296 80 2303 1010 567 30. Inventory Depletion 31. Depreciation 32, TOTAL PURCHASES 0 0 0 0 1751 29 173 116 1132 21699 13460 12997 8628 29136 0 94 0 0 0 0 0 0 735 257 303 175 110776 20212 22402 4996 * Denotes an entry of less than $500 which was rounded to zero. (continued) 12 Table 3. (continued) 24 Sales Purchases 25 City Government 0 26 27 31 28 29 30 Businesses outside the County Households outside the County Inventory Accumulation Households Federal & State Agencies in the County Federal & State Agencies outside the County 0 0 0 29392 0 44 32 Capital Investments Total Sales 0 39451 231 168929 1. Logging 2. Wood Processing 242 0 0 156558 3. Gilinet Fishermen 0 0 0 0 15 0 0 0 1116 4. Troll Fishermen 0 0 0 150 105 0 0 0 1234 5. Combination Fishermen 0 0 0 0 2379 0 0 0 6. Other Fishermen 0 0 0 0 81 0 0 0 7. Salmon Processing 0 52 0 27 6628 36 0 0 6909 8. Other Fish Processing 0 570 0 381 56792 314 298 0 59730 9. Agriculture 0 1347 0 0 2071 345 150 0 4372 10. Manufacturing 0 1630 11. Lodging 12. 1 4662 2144 8091 ' 3 6173 16784 407 0 9790 183 3 868 10 0 385 4568 0 0 6115 Restaurants 13 8426 14 0 0 6986 96 0 16042 13. Service Stations 92 12851 126 0 20 4803 55 2 28611 14. Automotive 44 14349 83 0 15. Transportation 34 245 50 232 16. Communication 17. 18. 3461 1112 3143 64 387 21697 19216 94 0 0 21699 2076 58 0 2 70 8163 Professional 264 5398 32 2398 2542 1014 Financial 644 3328 * 159 1737 538 19. Construction 545 11696 203 0 1694 2646 152 6656 20. Retail & Wholesale Products 654 79392 843 4 2521 5353 400 672 21. Retail Services 643 6084 159 352 4973 1083 34 111 0 7 0 0 13460 12997 0 8628 29136 110776 9 20212 22. Education * 4930 23. County Government 0 2633 241 545 989 0 0 0 4996 24. City Governments 99 5156 1461 670 0 0 0 138 11659 25. Households 2827 4617 7300 34058 14112 0 0 509 195849 26. Federal & State Agencies in the County 166 1103 1557 3112 1087 1350 13 1 20058 27. Federal & State Agencies outside the County 264 1755 2478 4953 1729 2149 21 2 31926 28. Businesses outside the County 1233 20038 3385 0 14669 363174 29. Households outside the County 24 200 13 2 19454 30. Inventory Depletion 0 0 35 31. Depreciation 32. TOTAL PURCHASES 1944 4038 2000 15 11659 195849 20058 7808 0 0 0 0 22402 0 0 0 0 0 0 0 0 0 0 0 0 543 0 0 0 0 0 28933 58309 318005 * Denotes an entry of less than $500 which was rounded to zero. 39327 5108 23284 1301164 13 A quick glance at Table 3 indicates, first of all, that the first 26 columns bear the same headings as the first 26 rows of that table. The 26 sectors shown in this part of the table comprise the "endogenous" part of the input/output model. It is among these sectors that the interactions in the economy exist. This interaction results from the flow of goods and services among Clatsop County businesses, households, and governmental agencies. Many of the goods and services being sold and used in Clatsop County are imported. Similarly, exports are very important to Clatsop County. Imports and exports are described by three sectors: (1) Businesses outside Clatsop County, (2) Government Agencies outside Clatsop County, and (3) Households outside Clatsop County. Specifically, imports are represented by the entries in rows 27-29 while exports are shown in columns 27-29 of Table 3. Each entry in Table 3 represents the sales from the sector on the left to the sector whose name appears on the top of the column. From the opposite viewpoint, such an entry represents the purchases of the sector of the column from the firms in the sector of the row. Reading across a row shows how much a sector sold to the other sectors. For example, reading across the 16th row of Table 3 shows that the Communications sector sold approximately $10,000 of goods and services to the Logging sector, $42,000 to the Wood Processing sector and so on. Sales to the first 26 sectors are to local firms. In addition, the Communications sector sold nothing to Federal and State Agencies outside Clatsop County; it sold approximately $2,076,000 worth of goods and services to Businesses outside the county and $58,000 to Households outside the county. These are the sector's exports. Inventory accumulation and capital investment are other uses of a sector's output. They are shown in columns 30 and 31. The entries in column 32 represent the sum of all the entries to the left. They are the total sales of the sector. For the Communications sector there are no positive entries for Inventory Accumulation and Capital Investment. Total Sales were about $13.5 million. 14 Reading down a column indicates how much a sector purchased from the other sectors. For example, reading down the 13th column of Table 3 shows that the Service Stations sector purchased nothing from the first 8 sectors. It purchased approximately $4,000 from the Agricultural sector and so on. Again, the entries in the first 26 rows are purchases from local firms and households. The purchases from sector 27, 28, and 29 are imports. Not unlike purchasing from other sectors, a firm may draw down its inventories or depreciate its capital stock to support its production. Charges for these two inputs are shown in rows 30 and 31. The sum of all entries down a column shows the total purchases of a sector. For the Service Stations sector, the entry in row 32 shows total purchases of approximately $29 million. Total Sales The information in the last row or column of Table 3 is also presented in Table 4. Here the entries are arrayed in declining order of magnitude. They present one measure of the importance of the various sectors in the Clatsop County economy. From this scale it is apparent that natural resources, the harvesting and processing of timber and fish, play an important part in the county's economy. Another important industry in Clatsop County is tourism. However, no one sector contains the total tourist impact upon the economy because tourists spend money in a wide variety of sectors such as Lodging, Restaurants, and Service Stations. To shed more light on the size of this sector, the 29th column in Table 3 is examined. It represents the exports to Households outside Clatsop County. Some of these exports are sales to tourists passing through the county, while others are sales to individuals who live near Clatsop County but who shop inside the county. The total of exports to out-of-county residents is $39,327,000. No direct estimate exists of the proportion attributable 15 Table 4. Clatsop County Sectors by Total Sales Sales (thousands) Rank Sector 1 Wood Processing 2 Retail & Wholesale Products 3 Other Fish Processing 59,730 4 Logging 39,451 5 Construction 29,136 6 Service Stations 28,611 7 Education 22,402 8 Transportation 21,699 9 Automotive 21,697 10 Retail Services 20,212 11 Federal & State Agencies 20,058 12 Manufacturing 16,784 13 Restaurants 16,042 14 Communication 13,460 15 Professional 12,997 16 City Governments 11,659 17 Financial 8,628 18 Combination Fishermen 8,091 19 Salmon Processing 6,909 20 Other Fishermen 6,173 21 Lodging 6,115 22 County Government 4,996 23 Agriculture 4,372 24 Troll Salmon Fishermen 1,234 25 Gillnet Salmon Fishermen 1,116 TOTAL $168,929 110,776 $661,277 16 to tourists. Of the $39 million, approximately $5 million can be attributed to sectors which are not traditionally connected with tourism (Wood Processing, Agriculture and Manufacturing). Another $16.5 million occurred in sectors in which sales to non-resident households are likely to be sales to tourists (Lodging, Restaurants, Service Stations, Transportation and Communications). The other $17.5 million was spent in sectors which sell to both tourists and day shoppers living near Clatsop County. This indicates that sales to tourists are likely to be something less than $34 million. A more precise estimate of these sales could be derived only from a study which focuses directly on the tourist expenditures in Clatsop County. Employment For many purposes, employment by sector is a better measure of its importance in the local economy than is its rank by total sales. The two measures are not likely to lead to the same ranking as labor intensity among sectors varies. Table 3 provides, again, the necessary information. Households sell their labor services in exchange for wages and salaries. They also receive profits, interest, dividends, and rents for other services they provide. Many households are recipients of various payments from government. All of these flows of funds are recorded in row 25 of Table 3. These same numbers are arrayed from the highest to the lowest in Table 5. 17 Table 5. Clatsop County Sectors by Payments to Households and Output per Employee Sector Wood Processing Retail & Wholesale Products Logging Education Other Fish Processing Payments to Households (thousands) $18,395 13,708 12,598 11,426 9,779 Rank by Payments 1 2 3 4 5 Output per Employee $113,895 88,028 64,767 20,839 82,850* Retail Services Construction Professional Federal & State Agencies Restaurants 9,776 9,078 7,478 7,300 6,239 9 10 Financial Transportation Households Other Fishermen 6,120 5,129 4,617 4,211 11 12 13 14 51,046 48,972 N/A Manufacturing Automotive 3,699 3,038 2,827 2,231 15 16 65,317 1,930 1,626 19 20 21 22 Agriculture Salmon Processing 1,244 583 23 24 24,172 * 24,021 * 82,850 Troll Fishermen Gillnet Fishermen 304 180 25 26 16,614 * 16,614 City Governments Service Stations County Government Communication Combination Fishermen Lodging * ** 1,928 1,726 6 7 8 17 18 23,127 83,264 20,182 35,436 18,440 16,164 * 98,135 47,985 223,714 29,386 62,035 * 16,164 * See footnote on page 18. Employment information for the Agriculture sector was not available from the Department of Labor and had to be estimated from other published sources. 18 From the "Payments" column of Table 5, the importance of the natural resource based sectors is again apparent. But in contrast to Table 4 some of the labor intensive sectors, such as Education and Retail Services, also occupy much higher ranks than they did when ranked on the basis of total sales. Some additional information on the labor intensity of the various sectors can be gleaned from the last column of Table 5 which was derived by dividing the total output of each sector (from Table 3) by the total employment for that sector (from Table 2). To the extent that the rates of payments to households (annual wages, salaries, interest rates, etc.) are the same from sector to sector, a small number in this column indicates greater reliance on local households per unit of output in this sector's production than would be the case in a sector for which this number is greater. The values in this column range from less than $20,000 to more than $200,000. The Direct Coefficients Using the expression a = x /x where x ij = the quantity of goods and services flowing from sector i to sector j (the entry in Table 3 for row i and column j) and X = total output or sales of sector j (the entry in Table 3 for column 32 and row j), it is possible to construct a new table in which the entries (a ii ) represent coefficients depicting the proportion of goods and services supplied by sector i per dollar of output in sector j. The results of these calculations are shown in Table 6. Employment data for the four Fisheries and two Fish Processing sectors were not detailed enough to distinguish between sectors; therefore, these coefficients are just averages of all of the fisheries sectors and all of the fish processing sectors, respectively. 19 Table 6. Direct Purchase Coefficients for Clatsop County, Oregon, 1977 1 2 Logging 3 Wood Processing 1. Logging .0128 .0563 2. Wood Processing .1163 .0016 Gilinet Fishermen 0 4 Troll Fishermen 5 6 Combination Other Fishermen Fishermen 7 Salmon Processing 8 9 Other Fish Processing Agricultu 0 0 0 0 0 0 .0013 0 0 0 0 0 0 3. Gillnet Fishermen 0 0 .0109 0 .0383 0 .1128 0 0 4. Troll Fishermen 0 0 0 0 0 0 .1420 0 0 5. Combination Fishermen 0 0 0 0 0 0 .3254 .0580 0 6. Other Fishermen 0 0 0 0 0 0 0 .1003 0 7. Salmon Processing 0 0 0 0 .0001 0 .0224 0 0 8. Other Fish Processing 0 0 0 .0009 .0030 0 0 .0120 .0231 9. Agriculture * 0 0 0 .0003 0 0 0 .0019 Manufacturing .0004 0 0 0 .0044 0 .0115 .0184 0 Lodging .0001 * 0 0 0 0 0 * 0 10. 11. 12. Restaurants .0001 .0002 .0186 0 .0002 .0025 * * 0 13. Service Stations .0020 .0009 .0919 .1034 .0187 .0410 .0005 .0009 .0159 14. Automotive .0042 .0003 .0230 .0069 .0030 .0731 .0012 .0004 .0160 15. Transportation .0168 .0015 0 .0030 .0055 0 .0008 .0016 .0053 16. Communication .0002 .0003 .0004 .0021 .0017 .0017 .0018 .0020 .0048 17. Professional .0008 .0002 .0013 .0025 .0126 .0047 .0002 .0003 .0058 18. Financial .0029 .0012 .0066 .0275 .0156 .0022 .0001 .0001 .0255 19. Construction 0 .0004 0 .0029 0 0 .0001 .0001 .0096 20. Retail & Wholesale Products .0093 .0031 .3084 .2788 .0382 .0584 .0232 .0294 .2712 21. Retail Services .0049 .0007 .0729 .0593 .0530 .0038 .0028 .0024 .0228 22. Education .0431 .0106 .0015 .0005 .0017 .0004 .0044 .0019 .0130 23. County Government .0053 .0013 .0002 .0001 .0002 .0001 .0005 .0002 .0016 24. City Governments .0324 .0082 .0011 .0004 .0013 .0003 .0067 .0035 .0127 25. Households .3193 .1089 .1617 .2458 .2134 .6822 .0844 .1637 .2844 26. Federal & State Agencies in the County .0150 .0119 .0161 .0114 .0020 .0009 .0109 .0177 .0071 27. Imports .7924 .2841 .2547 .5867 .1288 .2484 .5870 .2794 .4140 - * Coefficient is smaller than .00005 (continued) 20 Table 6. (continued) 10 11 Manufac- turing 12 Lodging 13 Restau- rants Service Stations 14 Automotive 15 Transpor- tation 17 18 Communi- cation 16 Professional Financial 1. Logging .0001 0 0 0 0 0 0 0 0 2. Wood Processing .0003 0 * 0 0 0 0 0 0 3. Gillnet Fishermen 0 0 0 0 0 0 0 0 0 4. Troll Fishermen 0 0 0 0 0 0 0 0 0 5. Combination Fishermen 0 0 0 0 0 0 0 0 0 6. Other Fishermen .0041 0 .0019 0 0 0 0 0 ' 0 7. Salmon Processing .0005 0 0 0 0 0 0 0 0 8. Other Fish Processing .0024 0 .0158 0 0 0 0 0 0 Agriculture 0 0 .0068 .0001 0 0 0 0 0 .0002 0 .0008 0 .0002 0 0 0 * 0 .0157 .0001 .0004 9. 10. Manufacturing 11. Lodging 0 0 0 0 .0002 12. Restaurants .0012 0 0 .0003 * .0020 .0162 .0005 .0026 13. Service Stations .0117 .0144 .0010 .1740 .0241 .0781 .0066 .0006 .0007 14. Automotive .0011 .0007 .0003 .0031 .0063 .0039 .0007 .0002 0 15. Transportation .0033 .0275 .0001 * .0020 .0006 .0008 .0008 0 16. Communication .0038 .0424 .0044 .0019 .0033 .0064 .0020 .0074 .0083 17. Professional .0024 .0013 .0038 .0005 .0022 .0039 .0022 .0084 .0014 18. Financial .0065 .0277 .0061 .0025 .0043 .0005 .0026 .0116 .0020 19. Construction .0050 .0072 .0022 .0001 .0009 .0110 .0786 .0003 0 20. Retail & Wholesale Products .0282 .0956 .1490 .0126 .0293 .1029 .0044 .0253 .0059 21 ! Retail Services .0216 .0453 .0152 .0064 .0038 .0766 .0089 .0160 .0115 22. Education .0054 .0252 .0038 .0004 .0011 .0061 .0007 .0011 .0047 23. County Government .0001 .0031 .0005 .0001 .0001 .0008 .0001 .0001 .0006 24. City Governments .0049 .0236 .0082 .0008 .0018 .0050 .0011 .0026 .0038 25. Households .2204 .2659 .3889 .0780 .1400 .2364 .1432 .5754 .7093 26. Federal & State Agencies in the .0320 County .0134 .0483 .0039 .0438 .0217 .0020 .0201 .0170 27. Imports .6450 .4067 .3427 .7154 .7368 .4438 .7145 .3297 .2319 * Coefficient is smaller than .00005. (continued) 21 Table 6. (continued) 19 21 20 Construc- tion 22 Retail & Wholesale Retail Products Services Education 23 24 25 26 County Govern- ment City Govern- ments Households Federal & State Agencies in the County 0 0 0 0 0 0 0 0 Wood Processing .0069 .0002 .0001 .0002 0 .0001 .0012 0 Gillnet Fishermen 0 0 0 0 0 0 0 0 4. Troll Fishermen 0 0 0 0 0 0 0 0 5. Combination Fishermen 0 0 0 0 0 0 0 0 6. Other Fishermen 0 0 0 0 0 0 0 0 7. Salmon Processing 0 0 .0001 0 0 0 .0003 0 8. Other Fish Processing 0 .0021 * 0 0 0 .0029 0 9. Agriculture 0 .0030 0 0 0 0 .0069 0 1. Logging 2. 3. 10. Manufacturing .0010 * .0006 * .0029 0 .0021 0 11. Lodging 0 .0003 .0005 0 .0031 .0002 .0044 .0005 12. Restaurants .0006 .0004 .0014 * .0047 .0011 .0430 .0007 13. Service Stations .0260 .0087 .0045 .0050 .0287 .0079 .0656 .0063 14. Automotive .0136 .0043 .0089 .0039 .0404 .0038 .0733 .0041 15. Transportation .0016 .0022 .0005 0 .0291 .0030 .0013 .0025 16. Commuication .0062 .0114 .0094 .0037 .0364 .0060 .0417 .0055 17. Professional .0029 .0008 .0049 .0055 .0572 .0226 .0276 18. Financial .0161 .0003 .0076 .0086 .0004 .0553 .0170 .0016 * 19. Construction .1167 .0005 .0126 .0058 .0192 .0467 .0597 .0101 20. Retail & Wholesale Products .0591 .0364 .0610 .0444 .0983 .0561 .4054 .0420 21. Retail Services .0391 .0043 .0198 .0100 .0421 .0552 .0311 .0079 22. Education .0022 .0027 .0029 .1360 .0001 * .0252 .0969 23. County Government .0003 .0003 .0003 .0010 0 0 .0134 .0120 24. City Governments .0023 .0036 .0026 .0007 0 .0085 .0263 .0728 25. Households .3116 .1237 .4837 .5100 .3863 .2425 .0236 .3640 26. Federal & State Agencies in the County .0190 .0186 .0629 .0201 .0306 .0142 .0056 .0776 27. Imports .7761 .3157 .2451 .2204 .4768 .1225 .2954 .3750 * Coefficient is smaller than .00005. 22 As an example of the calculations necessary to construct Table 6, refer to the interaction between the Retail and Wholesale Products and the Restaurants sectors. If the former sector is the supplier of the goods and the latter is the purchaser, the intersectoral flow in row 20 (i) and column 12 (j) of Table 3 ($2,390,000) represents x ij . Xj , the output of the Restaurant sector, is found in column 32 and row 12 of Table 3, namely $16,042,000. Hence a = ij 2 390 000 2a- = 0.1490. This result corresponds to the entry in 16,042,000 the Wholesale and Retail Products row and Restaurants column of Table 6. There is a slight difference in formats between Tables 3 and 6. In the latter the "Imports" row is a combination of the three importing sectors of Table 3 (Federal and State Agencies outside the county, Business outside the county and Households outside the county) as well as Inventory Depletion and Depreciation. While Depreciation is an important cost for many sectors, imports generally outweigh all other entries in this row. These coefficients show how the various sectors differ in their reliance upon imports. As the coefficients in each column add to 1.0, an entry larger than 0.5 in the last row of Table 6 indicates that more than one half a sector's supplies originated in the components of the Imports row. This is the case for about one third of the Clatsop County sectors. Entries in Table 6 are referred to as "Direct Coefficients" because each entry indicates the direct requirements for inputs (in dollar terms) of the row sector which result from a one dollar change in the output of the column sector. Use of this direct coefficient disregards any other interactions in the economy which give rise to additional (indirect) output responses from other sectors. It is the estimation of the combined direct and indirect effects which are the subject of the next section. 23 The Direct-Indirect Coefficients An example may help to explain the more extensive nature of the economic impact of an output change in one of the sectors than is indicated by the entries in Table 6. Assume that the export demand for products of the Troll Fishermen (sector 4) increases by one dollar. This sector would increase its output by one dollar. Table 6 shows that this sector would import approximately an additional 25 cents worth of goods and services and would spend 75 cents in the sectors of the Clatsop County economy. The impact of the one dollar change would go further than this, however. Take, for example, the nearly 28 cents out of the 75 cents which Troll Fishermen would spend in the Retail and Wholesale Products sector. These 28 cents would cause further purchases by the latter sector which in turn would set off another round of effects. These impacts would continue over many rounds until "leakages" of funds from the local economy, mainly in the form of payments for imports, would bring the process to a halt. Mathematical manipulation of the data in Table 6 allows the derivation of another set of coefficients which portray this broader measure of economic impacts. The mathematics involve solving simultaneously a set of 26 equations of the form Ea ij Xj in which + Y = X (i , j = 1, 2, i i , 26) Y = final demand for sector i (the entries in columns 27-31 i of Table 3) and all other variables are as previously defined. * Any increase in "final demand" would have the same effects, i.e., the change could be in one of the three kinds of "exports", inventories or investment. See columns 27 - 31 of Table 3. 24 While the details of the mathematical solution are provided in Appendix 3, the results relevant for our purposes are presented in Table 7. Turning again to the above example, we notice that the total impact (direct and indirect) of a one dollar increase in final demand in the Troll Fishermen sector leads to 52 cents of purchases from the Wholesale and Retail sector. This is considerably more than the direct impact of 28 cents discussed earlier. Similarly it is noteworthy that in some instances no direct interdependencies between sectors may still lead to significant impacts when the indirect effects are taken into account. For example, Table 6 shows no direct purchases of the Troll Fishermen from the Construction sector. Yet Table 7 indicates a three cent impact on the Construction sector per dollar of final demand change in the Troll Fishermen sector. The Multipliers Among the various numbers derived from input/output models, multipliers are perhaps of greatest general interest. These measures are derived as the sums of the entries in the columns of Table 7. They are shown in the last row of that table and are arranged in declining order of magnitude in Table 8. The economic interpretation of these multipliers is straightforward. They indicate the total change in sales in the economy when final demand for the corresponding sector changes by one dollar. 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C en • • • • • • .-- v) •-, 0 ., • .7 LC) • LO • • Is co • Cs co • N M • ed. LC) • • • • • • LLD f".. CO Crs ON CI V • • • • LC) • CV CV CV CV CV CV C CI) •,.. U 40 %LiE tli 00 Lei L., • 4, 28 Table 8. Clatson County Multipliers b y Sector. Sector Multiplier Other Fishermen 3.2 Financial 3.1 Education 3.0 County Government 2.9 Federal & State Agencies 2.9 Professional 2.8 Retail Services 2.8 Salmon Processing 2.7 Households 2.7 Restaurants 2.6 Agriculture 2.6 Troll Fishermen 2.6 Construction 2.6 Gillnet Fishermen 2.4 Lodging 2.4 Logging 2.4 City Governments 2.3 Transportation 2.3 Other Fish Processing 2.1 Combination Fishermen 2.0 Manufacturing 1.9 Automotive 1.6 Service Stations 1.6 Wood Processing 1.5 Retail & Wholesale Products 1.5 29 One aspect about these multipliers is important enough to be reemphasized. They refer only to the total volume of sales in the economy which are associated with a given economic change. It is not easy to interpret this number. While it does yield some indication of overall changes in economic activity in the area, its analytical content goes no further. Especially when it comes to measuring broad economic impacts it must be remembered that the multipliers combine the output effects in perhaps vastly different economic sectors. Adding together a dollar's worth of sales in each of the Service Stations and Professional Services sectors is a bit like adding apples and oranges. Whenever possible, it is prefereable to use the data in Table 7 more extensively. If there is an anticipated change in final demand of a certain sector for which some statements on impacts are desired, it may be better to review all the entries in the sector's column than to focus only on the sum of them. In this manner something can be said about the impact of the change on specific sectors. The entry in the Household row is especially important because it portrays the effect that the anticipated change is expected to have on payments flowing to local households. A Note about Applying the Results The greatest strength of the work reported here lies in its description of the Clatsop County economy. It is possible to learn a great deal about this economy, the size of its components and their interrelationships from the various numbers which were discussed. While it is necessary to remember that the fundamental data for this work were collected from a sample survey and may be subject to some errors, the overall accuracy of the description which * This is especially true for individual entries in the Transactions Table which may have been derived from a small number of observations. 30 this model provides is good. The data collection work was extensive and successful and the overall results appear reasonable and consistent with those derived from other studies. Pure description of the Clatsop County economy is, however, of limited practical usefulness. Instead, most applications of the model will be concerned with its use as a predictive device. The discussion of the directindirect coefficients and multipliers was indicative of the kinds of predictions about impacts for which this model is likely to be used. We raise three concerns in this regard. When using this model for predictive purposes it is, first of all, necessary to remember its limitations. The model was derived on the basis of 1977 data. The relationships in the economy as they existed in 1977, therefore, will have to be used to make any statements about impacts in the future. Whenever it is thought that the 1977 description of the Clatsop County economy is no longer representative of the current structure of the economy, further uses of the model become hazardous. Work is under way at Oregon State University on the efficacy of up-dating small area input/output models to extend their useful lives. Closely related is a second concern about the nature of the expected change to be analyzed. The model does best in predicting impacts of marginal changes in output of existing sectors in the economy. When changes in existing sectors are very large or when entirely new industries are established in an economy of which an existing sector would not be representative at all, modifications will have to be made in the model itself. The discussion of these alterations goes beyond the scope of this report. * A person not familiar with input/output models may want to study more about them before attempting more complex applications of these results. Readily accesible references are the books by Miernyk [5] and Richardson [6]. 31 Finally, there are some instances in'which a considerable amount of analysis must precede application of the input/output model. As indicated earlier, the latter can only predict impacts which result from changes in final demand. Whatever change in the economy is desired to be analyzed, it must first be expressed in terms of final demand changes in one or several sectors. Careful analysis at this stage will payoff in maintaining the integrity of the results which can be generated by using this model. 32 REFERENCES 1. Cochran, William G. Sampling Techniques. John Wiley and Sons, New York, 1963. 2. Collin, Theodore G. An Interindustry Analysis of the Effects of a New Industry on the Public and Private Sectors in Clatsop County, Oregon. Master Thesis, Oregon State University, Corvallis, 1970. 3. Collin, Theodore G., Russell C. Youmans, and Herbert H. Stoevener. Impact of a Major Economic Change on a Coastal Rural Economy: A Large Aluminum Plant in Clatsop County, Oregon. Oregon State University, Corvallis, 1970. 4. Ives, Edward E. Input-Output Models Estimated from Primary Data: Sampling Considerations and Parameter Variability. Ph.D. Thesis, Oregon State University, Corvallis, 1977. 5. Miernyk, William H. The Elements of Input-Output Analysis. Random House, New York, 1965. 6. Richardson, Harry W. Input-Output and Regional Economics. John Wiley and Sons, New York, 1972. APPENDIX 1 Clatsop County Processing Sectors Sector Name/Types of Firms Included 1. Logging: Firms Involved with the growing, harvesting, and hauling of timber. 2. Wood Processing: Firms producing lumber, paper, or wood products. 3. Gillnet Salmon Fishing: Licensed commercial gillnet salmon fishermen who reside in Clatsop County. 4. Troll Salmon Fishing: Licensed commercial troll salmon fishermen who reside in Clatsop County. 5. Combination Troll Salmon Fishing: Licensed commercial fishermen fishing for salmon in addition to other fish (crab, tuna, etc.), who reside in Clatsop County. 6. All Other Fishing: Licensed commercial fishermen who reside in Clatsop County, fishing for any fish except salmon. 7. Salmon Processing: That proportion of fish processing firms that process salmon. 8. All Other Fish Processing: That proportion of fish processing firms that process all other fish except salmon. 9. Agriculture: Farms, ranches, nurseries, and dairies. 10. Manufacturing: All manufacturing firms except wood products and fish processing. 11. Lodging: Motels, apartments, trailer parks, and campgrounds. 12. Restaurants: Restaurants, cafes, bars, taverns, and fast-food businesses. 13. Service Stations: Retail and wholesale fuel and accessories. 14. Automotive Sales and Services: Firms selling or servicing automobiles, motorcycles, farm equipment, parts, and accessories. 15. Transportation: Trucking (except log trucks), buses, railroad, boats, tugs, barges, port authority and air transportation. 34 16. Communication: Telephone, telegraph, newspaper, and radio station. 17. Professional Services: Medical, legal, engineering, accounting, and consulting. 18. Financial Services: Banks, savings and loans, credit bureaus, finance companies, and credit unions. 19. Construction: Firms preparing land, building structures, or repairing structures. 20. Retail and Wholesale Sales: Firms selling products such as , grocery stores, art galleries, electric utilities or office supply stores. 21. Retail Services: Firms selling services such as insurance, garbage collection, beauty shops, or repair shops. 22. Public or Private School: Education or training centers. 23. Clatsop County Government: All agencies of the county government. 24. City Governments: The governments of Astoria, Cannon Beach, Gearhart, Hammond, Seaside, and Warrenton. 25. Households: All private individuals in the county. 26. Federal and State Agencies in the County: Federal and state agencies located in and serving Clatsop County such as the Post Office or the State Police. In addition to the 26 processing sectors of the Clatsop County economy, five other sectors are used in the transaction table. These sectors are rows: 27. Federal and State Agencies Outside the County: Federal or state agencies not located in Clatsop yet financed by Clatsop County taxes. 28. Businesses Outside the County: Firms outside Clatsop County which supply Clatsop County businesses with goods and services. 29. Households Outside the County: Private individuals outside of Clatsop County which supply Clatsop County businesses primarily with labor or capital. 30. Inventory Depletion: Decreases in the inventory of Clatsop County businesses. This entry is used to balance the table. 31. Depreciation: The value loss from the aging of assets owned by Clatsop County businesses. 35 Column 27. Federal and State Agencies Outside the County: Purchases by Federal and State agencies outside Clatsop County of goods and services from Clatsop County businesses. 28. Businesses Outside the County: Purchase by business firms outside of Clatsop County of goods and services from Clatsop County businesses. 29. Households Outside the County: Purchases by private individuals who reside outside Clatsop County of goods and services from Clatsop County businesses. 30. Inventory Accummulation: An increase in the inventory of Clatsop County business. This entry is used to balance the table. 31. Capital Investment: The purchase of a major asset by Clatsop County businesses. APPENDIX 2 CONFIDENTIAL INPUT-OUTPUT QUESTIONNAIRE Clatsop County Oregon State University Winter 1978 Firm `s Name: Date of Interview: Time Interview Started: Hello, my name is A.M./P.M. , I am working for Oregon State University. We are conducting an economic survey for the Clatsop County Board of Commissioners. If you don't mind I would like to ask you a few questions about your business. The information you give is strictly confidential. 1. First, I'd like to know, from the sale of what products or services your business receives the major part of its income. 2. Next, approximately what was your total business income from all sales of merchandise and services in 1977? 3. Now I would like you to think a bit about who it is to whom you are selling. We are interested mainly in finding out to what extent your sales may be to customers inside or outside of Clatsop County, and whether your sales are to other businesses, private individuals, or various units of the government. (a) First of all, what was the approximate amount or percentage of your sales made to other businesses inside Clatsop County? $ (b) What was the approximate amount or percentage of your sales made to private individuals or households residing in Clatsop County? (c) What was the approximate amount or percentage of your sales made to governmental agencies including schools in Clatsop County? $ 37 Turning next to your sales going outside of Clatsop County, what was the approximate amount or percentage of sales going to (d) other businesses there? $ (e) private individuals or households not residing in Clatsop County? (f) agencies of the federal,or state governments and local governments outside Clatsop County? 4. $ $ Was your inventory of merchandise for sale higher ( ), lower ( ) or about the same ( ) at the end of 1977 as it was at the beginning of the year? (If the same skip to question 6) 5. About how much higher or lower? $ 6. Next I would like to ask you about the purchases for your business. On this sector identification card (hand respondent sector identification card) are listed various economic sectors from whom you may have purchased during 1977. Would you please go down this list and tell me whether or not you purchased at all from the sector and, if so, approximately how much you purchased? Please note that we are interested only in the purchases you made for current use in your business or for resale, not in any investment expenditures. (Interviewer: Record amounts in Current Expenditures column of Expenditures Table) 7. Now please think about any investment purchases you may have made during 1977. These are expenditures for any items which you expect to use for more than one year such as machinery, equipment, and buildings. Again referring to the Sector Identification Card would you tell me the approximate amounts, if any which you spent in each sector? 8. What was the approximate amount you charged for depreciation in your business during 1977? 38 9. My final questions are about your taxes and similar payments made during 1977. First, could you tell me about how much you paid for any business licenses which you may have bought from (a) your city government? (b) your county government? (c) any state government? (d) the federal government? 10. Approximately how much did you pay to Clatsop County for real estate and personal property taxes on your business property during 1977? 11. Approximately how much did your business pay for state and federal income taxes during 1977? This is all the information we need at the present time. I would like to leave a few additional questions with you. These are of special interest to the Clatsop County Planning Commission. I hope you can find the time to complete the questionnaire. We plan to stop by to pick it up in three or four days. Thank you very much for your help. The interview was completed at A.M./P.M. I certify that the interview was taken with the firm listed above and that the information recorded is a true representation of the interview. Interviewer's Signature 39 1977 PURCHASES TABLE Purchases for Current Use Investment Purchases 1. Logging $ $ 2. Wood processing $ $ 3. Commercial gillnet salmon fishing $ $ 4. Commercial troll salmon fishing $ Sector INSIDE CLATSOP COUNTY 5. Commercial combination troll salmon fishing $ 6. All other commercial fishing $ 7. Salmon processing $ 8. All other fish processing $ $ $ $ $ $ $ 9. Agriculture 10. Manufacturing $ $ 11. Lodging $ $ 12. Restaurants $ $ 13. Service stations $ $ 14. Automotive sales and service $ 15. Transportation $ 16. Communication $ 17. Professional services $ 18. Financial services $ 19. Construction $ 20. Retail and wholesale goods $ $ 21. Retail services $ $ 22. Public and private schools $ $ $ $ $ $ $ $ 23. Clatsop County government 24. City in Clatsop County (which one? $ $ ) $ 25. Households OUTSIDE CLATSOP COUNTY 26. Government 27. Businesses 28. Households 29. TOTALS (Complete after interview) $ APPENDIX 3 Mathematics of Deriving Input-Output Coefficients The general form of the transactions table is: Purchasing Sectors Local 2 o tJ 1-) 0 CJ Non-Local 1 2 x11 x12 """ xli x21 x22 """ x2 x lm x2m x x Total Sales X ln X 2n • • • • 1-4 x2,2 ... xki xkm xm,1 xm2 """ xmi mm x51,1 x 1 2 X in X mn o • 0 0 Total Purchases where xnl xn2 """ x nm x X X Xm... X n 1 2 • • • X xi. = the purchases of the j (i = row, j = column) X. = E 1=1 th sector from the i x.. = total purchases for the j th X. = X. for i,j = 1, 2, ... X. for i,j = m, m+1, n th th sector sector 1j X.=Ex..=total sales for the i j=1 Xi X n nn sector 41 The general form of the table of direct coefficients is: Purchasing Sectors 0 4, 1 a 2 a ... k 2 1 a 11 a 21 12 22 ... a ... a lk 2Z • a2,1 ak2 akk where a.. = x.. X. 13 13 3 for i,j = 1, 2 ... k To derive the direct-indirect matrix, the linear equation for the sum of . 1th sector is used: total output for the 1 X. 1 = E x.. + E x.. j =m 13 j= 1 13 if we set n E x.. 13 j=m Y.=.final demand (non-local demand) 1 the X. = E x.. + Y. 13 1 j=1 Given that the direct coefficient: a.. = x../X. 13 3 then x..= a..X.. 1.3 By substitution X. =E a..X. + Y. lj 1 1 j=1 The set of linear equations for the set of sector outputs can be expressed in matrix forms as 42 X = AX + Y where X = a vector of sector outputs Y = a vector of final demands A = a matrix of direct coefficients Solving for X X - AX = Y [I - A] X = Y [I - A] -1 [I - A] X= [I - A] -1 Y X = [I - A] -1 Y where I is an identity matrix. The [I - A] 1 matrix is the Leontief direct-indirect matrix. It describes the expected impacts upon Total Output (X) given a change in final demand (Y).