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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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Per Cent WA<br />

Decrease<br />

From Current<br />

Level<br />

Of Air<br />

Rate<br />

-00%<br />

eme.soaa so ft<br />

•••••.<br />

a •<br />

4<br />

• I<br />

e<br />

.1<br />

Diagram I-1<br />

meN<br />

• Percent Of<br />

Total Air<br />

__ Consignments<br />

Similar types of studies are described in Strat<strong>for</strong>d [113],<br />

and [114]. More commodities are surveyed (<strong>for</strong>ty) and more<br />

sectors of the firm are considered (six). The type of<br />

analysis is referred to as substitution analysis. Un<strong>for</strong>tun-<br />

ately, none of the empirical results are presented nor<br />

were production costs taken into account.<br />

Brewer [27] derives the demand curve <strong>for</strong> air freight<br />

between the United States and Europe <strong>for</strong> 1957. Using<br />

Bureau of the Census data, he chooses to view all commodity<br />

groups having an average value per pound greater than $.40.<br />

The rationale <strong>for</strong> this choice is that an average of $.40<br />

per pound means an appreciable proportion of the goods in<br />

that category have value of greater than $1.00 per pound,<br />

which is his true criterion <strong>for</strong> air candidacy. Brewer<br />

subscribes to a "well developed thesis that high value<br />

11

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