T HE main purpose of this paper is to investigate the relationships between the state distribution of military prime contract awards for experimental and developmental, tests, and research work (hereafter EDTR) and the state distribution of total military prime contract awards. It has been argued that the acquisition of research contracts in a particular state is desirable because such contracts lead to large procurement awards in the future, and these awards are important for the state's economic growth. Consider, for example, the remark of Senator Hubert H. Humphrey:

The task is an analysis of the traditional labor supply model using several competing methodologies. The approach is a step-by-step exploration of alternative labor supply estimating equations that attempts to identify the independent (marginal) effect of each particular change in the form of these equations. By systematically exploring what difference each of these changes makes to the parameter estimates, one can isolate which factors strongly affect estimated response parameters. Results from existing research can then be evaluated within a larger context, and future research can concentrate on resolving those methodological issues that do make a difference.

David Greenberg, Robert Moffitt, John Friedmann, Underreporting and Experimental Effects on Work Effort: Evidence from the Gary Income Maintenance Experiment, The Review of Economics and Statistics, Vol. 63, No. 4 (Nov., 1981), pp. 581-589