Planning Documents
Right Column
The Input-Output Model
Economists have long been interested in estimating the total economic impact generated by an activity. In this case we are interested in the economic impacts of boating and fishing on the Delta region. These recreational activities generate expenditures (see the previous section) in the local economy. The local businesses that received these funds in turn hire a certain proportion of the local labor and pay for local services. The local recipients turn around again and spend a portion of their receipts in the local economy. Therefore every dollar spent in the region will have multiplier effects that reflect not only the direct impact of boating and angling expenditures within the economy, but also the ripple effects that these expenditures create as businesses and employees spend the money they receive on other businesses within the region, to either provide the services necessary for their operation or to consume final goods.
The more that people and institutions buy and sell within the given economy, the greater the multiplier effects. In this report we are concerned with the impacts of these recreational activities on the immediate Delta region. Their impacts on the state of California will obviously be much larger since, as shown in Table 6, many of the recreational expenditures are made outside of the Delta, and in addition, many of the economic ripple effects of the within-Delta expenditures will occur outside of the immediate Delta region.