The first‐order Markov chain model is frequently used to project the future size distribution of firms in a particular industry. This model, however, is based on the rather restrictive assumption that the transition probabilities remain constant over time. This assumption was found to be inappropriate in the case of plants manufacturing frozen milk products in Pennsylvania during the period 1944–1963 and, if adopted, could lead to erroneous results as some actual predictions indicated. This article suggests a method, based on multiple regression techniques, of replacing the constant transition probabilities with probabilities which are a function of various factors including structural characteristics in the industry. The results of this procedure compared quite favorably with those of the assumption of constant probabilities.

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The off-farm labor participation and supply decisions of Massachusetts farm families were estimated in a model which allows for joint decisions. The hypothesis of joint off-farm participation decisions by operators and spouses was rejected. However, there was some evidence that the hours supplied by the farm operator was dependent upon the decision by the spouse to work off-farm. Farm operators were found to respond to both family and farm characteristics in making participation and supply decisions. Spouses respond to the characteristics of the farm and family in participation decisions while family characteristics determined hours worked by the spouse.

Publio Investment in water-based recreation facilities is made to increase the recreation potential of an area and to improve the economic resource base of the area. Estimates of the impact of one such investment on the structure of the land market and on property values were made for a rural area in Pennsylvania. The findings of the study support the general hypothesis that invesbnent in water-based recreation facilities does significantly in8uence the value of runil property and the structure of the rural land market. Property characteristics and subdivision activity on surrounding properties had to be considered in addition to distance from the recreational development to measure the impact of this public Investment, E VALUATION of the economic contribution of recreation facilities has centered primarily on measuring fish and wildlife benefits and on determining factors which influence the extent to which such facilities are utilized [8,10,12]. These considerations are only part of a much broader problem. Of equal if not greater importance are the positive or negative impacts of recreational development projects on (1) employment, (2) distribution of income, (3) industrial development, and (4) the asset position of rural families in the surrounding areas. Some of these questions have been investigated [3,7].This article presents the results of research designed to evaluate the impact of a specific recreational park development on property assets in the nearby rural area. The study was confined to an analysis of (1) the extent to which the per-acre value of different types of properties located in the nearby area was affected by the park development,' and (2) the way in which the structure of the market for these properties was altered by the park development. The Study AreaThe basic data for this study were based upon transfers of properties located near a 2,25O-acre water-based state park which is within 20 miles of two relatively large population centers in Pennsylvania (Harrisburg with a population of 79,697 and York with a population of 54,504). Aco Authorized for publication as paper 3335 in the journal series of The Pennsylvania Agricultural Experiment Station. This article was based on research conducted in cooperation with the Institute for Research on Land and Water Resources at The Pennsylvania State University. We wish to express our appreciation to Roger Downing for his assistance in carrying out the research and to Lee Day and J. D. Jansma for their comments on earlier drafts.