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

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Footnotes--Continued<br />

commodity.<br />

2. The amount of cargo in a barge. There is an empty barge weight<br />

<strong>for</strong> each river district. A simple <strong>for</strong>mula is given <strong>for</strong> interpolating<br />

the weights <strong>for</strong> loads between empty and completely full.<br />

The <strong>for</strong>mula makes the EBM weight of any specific load a linear<br />

function of the draft of the vessel.<br />

No detailed account is given of the derivation of the weights.<br />

. They were apparently taken from tank tests made at the University of<br />

Michigan by Professor L. A. Baler and from individual carrier experience.<br />

CHAPTER III<br />

1H owe, <strong>Water</strong> <strong>Resources</strong> Research, I, No. 1 (1965), 25-39, and Howe,<br />

"Process and Production Functions , . ," January, 1964.<br />

2 A. A. Walters, "Production and Cost Functions: An Econometric.<br />

Survey," Econometrica, XXI (Jan.-April, 1963), 1-66.<br />

3 It is assumed that other parameters of the production function remain<br />

the same across all River Districts. -Thus, the river district<br />

dummy variables represent a shift in the whole production surface.<br />

4See: J. Johnston, Econometric Methods (NeW York: McGraw Hill,<br />

1963), pp. 136-138.<br />

5For a discussion of technological change see: Lester B. Lave,<br />

Technological Change: Its Conception and Measurements (Englewood Cliffs:<br />

Prentice Hall, 1966).<br />

Chap. 4. This can be compared to an overall rate of technological<br />

change in manufacturing of.about 2 1/2% per year.<br />

CHAPTER IV<br />

. .<br />

IA river district is a stretch of the waterway system which has<br />

roughly the same characteristics (depth, width, and stream flow) over<br />

its length. All of the firms in the sample collect in<strong>for</strong>mation on<br />

their operations by river district (ton-miles produced, towboat hours<br />

of operation, etc.) This in<strong>for</strong>mation is taken from the towboat logs<br />

that a, captain keeps <strong>for</strong> each boat. Fortunately, the definition of<br />

the various river districts (about 27 in all) is, with one exception,<br />

the same <strong>for</strong> all the firms. The same definitions are found also in<br />

Interstate Commerce Commission literature about the baige industry<br />

(See I.C.C. Barge Form C).<br />

154

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