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

(4.26)
(4.27)
(4.28)
(4.29)
(4.30)
(4.31)
(4.32)
-b 2 Q 2
T l • g l + h l M
4 ■ g 2 + h 2 M
T 3
g 3 + h 3 M
In this formulation we see that equations (4.26), (4.27) and (4.28)
are each a self-contained sub-set of order zero and may be estimated
separately and independently. 1
Equations (4.22) through (4.25) then constitute a derived struc-
ture of the first order. Using (4.26), (4.27) and (4.28) to eliminate
the rate variables, they become
. Q1 Q2 + . (13 " c m a+ YA
-b 1 Q 1
+ T c • (al + gl )
+ T c ■ (82 + g 2 )
-b 3 Q 3 + T c ■ (a 3 + g 3 )
+ (c1 + h 1 ) M
• + (c 2 + h 2 ) M
+ (c3 + h3) M
The following sections deal with our empirical investigations of
these two sets of estimating equations.
Empirical Results -- The Rate Equations
Having derived the estimating equations, we now turn to our em-
pirical work. In this section we shall deal with equations (4.26),
(4.27) and (4.28), the transport rate equations. The following section
contains our discussion of the demand equations. As stated previously,
1. The terminology and procedure is taken from H. A. Simon, "Causal
Ordering and Identifiability," Chapter III of W. C. Hood and T. C.
Koopmans, Studies in Econometric Method, Cowles Commission Monograph
No. 14, Wiley, New York, 1952.
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