[6] These expenditures were obtained from National Aeronautics and Space Administration, Annual Procurement Report, Fiscal Year 1987. Washington, D.C., 1988. [7] Data on the NASA procurement awards were derived from National Aeronautics and Space Administration, AC45/1 Subcontracts Awarded NASA Price Contractors and Their First Tier Subcontractors ($10,000 and Over), Fiscal Year 1987. Washington, D.C., 1988. [8] Information on the impact of the Space Program on substate regions - cities, counties, and metropolitan statistical areas - is also available from MISI. APPENDIX THE MISI APPROACH: ESTIMATING THE TOTAL (DIRECT PLUS INDIRECT) ECONOMIC EFFECTS The economic and employment effects of the NASA programs were computed using the Management Information Services, Inc. data base and information system. A simplified version of the MISI model as applied to the NASA budget simulations is shown in Figure A. The first step is the translation of expenditures for a program or set of programs into per unit output requirements from every industry in the economy. This is determined by four major factors: 1) the state of technology, 2) the distribution of expenditures, 3) the specific program configuration, and 4) the direct industry requirements structure. While the model contains 500 industries, in the work conducted here an 80-order industry scheme was used. Second, the direct output requirements of every industry affected as a result of expenditures on the program are estimated. These direct requirements show, proportionately, how much an industry must purchase from every other industry to produce one unit of output. Direct requirements, however, give rise to subsequent rounds of indirect requirements. For example, steel mills require electricity to produce steel. But an electric utility requires turbines from a factory to produce electricity. The factory requires steel from steel mills to produce turbines, and the steel mill requires more electricity,... and so on. The latter are the indirect requirements. The sum of the direct plus the indirect requirements represents the total output requirementsas a result of from an industry necessary to produce one unit of output. Economic input-output (I-O) techniques allow us to compute the direct as well as the indirect production requirements, and these total requirements are represented by the "inverse" equations in the model. The ratio of the total requirements to the direct requirements is called the input-output multiplier. Thus, in the third step in the model the direct industry output requirements are converted into total output requirements from every industry by means of the input-output inverse equations. These equations show not only the direct require-
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