Complementarity between leisure time and market recreation is estimated empirically by regressing the demand for leisure time of U.S. employees in the 1900-1961 period on the relative price of recreational goods and services, holding real income and the relative price of leisure time constant. The results support the complementarity hypothesis: about 25 percent of the estimated long-term increase in the demand for leisure is explained by a decline in market recreation prices. An observed negative partial regression of the demand for market recreation on the relative price of leisure time further supports the notion that the two goods are closely related.

This paper is an examination of the effects on resource allocation of technological externalities within a given industry. A competitive equilibrium in the presence of technological externalities in production is compared with a Pareto optimum in terms of input use and final outputs of the economy. Resource allocation with technological externalities and imperfect competition is also compared with the competitive and Pareto-optimal solutions. It is shown that standard theory's approach for comparing resource use requires extremely restrictive assumptions and, in general, can lead to significant errors.

Linear programming techniques are used to estimate an industry frontier production function. Measures of technical, price, and economic efficiency given scale are calculated. Analyses of these indexes indicate that both neutral and nonneutral economies of scale exist, nonneutral (fuel saving) technological advance has occurred, and plant efficiency is related to the production technique utilized. These results are interpreted to imply that the frontier function and the multidimensional efficiency indexes are reasonable. The possibility is raised that reliance on the fuel conversion ratio as a measure of plant efficiency has resulted in nonoptimum combinations of factors.