Impacts of water reallocation: A combined computable general equilibrium and recreation demand model approach

To date, the regional economics literature has neglected to combine a count y-level dynamic computable general equilibrium (CGE) model with a recreatio n demand model to analyze the temporal effects of reallocating water from a griculture to recreational use. This study begins to address this weakness in the literature by considering water reallocation issues in rural Nevada. By combining a recreation demand model with a CGE model, this study analyz es the policy effects on both the agricultural sectors and the recreation-r elated sectors, Model results show that the increase in non-agricultural ou tput does not offset the reduction in agricultural output due to water with drawal.