CHANNELS OF SYNTHESIS 711g. Locatio

CHANNELS OF SYNTHESIS 711

g. Locational efficiency constraints. A final set of constraints relating to
the interregional linear program of Channel IV must now be introduced.
In one sense these constraints represent a basic addition to Channel IV.
These constraints bear upon locational efficiency. They tend to capture
for Channel IV a good part of, if not all, the firm results which can be
yielded by Comparative Cost, Industrial Complex, Urban Complex
techniques. Their addition, which is indicated in the lower right and
central part of Figure 9, upgrades the efficiency character of Channel IV.
More comprehensively than interregional linear programming, these
techniques can consider existing and anticipated cost differentials among
alternative locations. On the other hand, their use must be restricted
since they treat individual industries or complexes and, as already noted,
cannot capture interdependence relations as comprehensively as can an
interregional interindustry (activity) matrix, whether it be associated
with input-output or linear programming.
An effective synthesis into Channel IV of comparative cost and industrial
complex (and when operational urban complex) may repeat a number of
steps already covered in Channel I. Specifically, the first seven steps of
this channel, as succinctly summarized in section B.2.c of this chapter,
may be pursued. However, in pursuing these steps the investigator must
make certain adjustments in the light of values and goals and minimum
social and other accounts already established in Channel IV. For
example, if he has set as a basic goal a major expansion and upgrading
of educational services, he must accordingly alter the estimated government
expenditure account for the system (covered in the third of the
seven steps of Channel I). Or if he has already incorporated in Channel
IV goals which bear on consumer expenditure patterns, he may need to
make certain adjustments in the magnitudes of several of the seven
steps.
Because Channel IV is primarily conceptual and because its development
is already lengthy we shall not enter into a discussion of the diverse
adjustments that would be required. Suffice it to state that these steps
would yield outputs by regions for those sectors and industries subject to
comparative cost and industrial complex analyses. (Recall that these
sectors were designated exogenous producing sectors.) Such analysis
would fully consider labor, power, tax, and other cost differentials, and
scale and other economies—which differentials and economies are critical
but not easily embodied, if at all, in a linear programming formulation.
The investigator may then proceed to detail the set of inputs required by
each of these exogenous producing sectors in each region. He may
establish these inputs as deliveries to be met in the very same sense in
which consumer expenditures and government expenditures in each region