for each sector is obtained by multiplication of state consumption-income
 ratios by regional income. Net inventory change and capital accumulation
 by sector are also estimated from [14] for Florida, 1970; these are as-
 sumed to be related to output levels and are estimated by multiplying the
 state ratio by regional output. Finally, federal government expenditures
 are assumed to be related to population; the data for Florida, 1970 [14]
 are obtained by multiplying state data on expenditures per capital by re-
 gional population. (Table B6 gives the State Final Demand for 1970 from
 S[14] used here.)
 Since not all requirements are purchased locally, the requirements
 matrix is not reflective of local transactions. Local purchase coefficients
 are first estimated and then estimates of local transactions are obtained
 from these coefficients. In most cases, the local purchase per dollar of
 sales coefficients are obtained by multiplying the rows of the national
 coefficients matrix (Table Bl) by the location quotients for sectors with
 location quotients less than one and otherwise are the same as the national
 coefficients. The rationale behind this adjustment is that local purchases
 from a sector with location quotient less than one (an importing industry)
 would be less than local requirements from such a sector. To get the local
 transactions table to balance, in some cases an additional adjustment
 factor described in [13] had to be used.
 Finally, local intermediate transactions may be estimated by multiply-
 ing local purchase coefficients by local output. Locally purchased final
 demands are estimated from final demand requirements in order to get the
 transactions table to balance. The method of computing local transactions
 implies the assumption that when imports of a good are necessary, each
 local sector imports in proportion to its requirements with the same propor-
 tionality factor for all sectors importing that good. The need for this
 somewhat unrealistic assumption is due to the use of secondary data, Again,
 the only way to get accurate information on imports by sector would be by
 direct survey.
 Imports and exports may be estimated using the requirements and trans-
actions tables. An import from a sector is the difference between require-
ments from that sector and local purchases from that sector. Total import
from a sector is the sum of intermediate import and imports for final demand.