The critical value of the null hypothesis of the difference between

the intercepts between state i and j, i, j = 1, ..., 5, equal to zero

against the alternative of not equal to zero is 2.145. Given this, it

is apparent that the null hypothesis of equal average productivity can

be rejected in nearly all cases. The results of these tests suggests

that productive interdependence across state catch equations is not of

sufficient magnitude to verify Gordon's (1954) equal average productivity

hypothesis. A further implication of these tests is to give support to

the specification of the reef fishery catch equations on a state by

state basis. The statistical difference in the intercept terms across

states suggests that the estimated catch equations provide a reasonable

characterization of the Gulf of Mexico Reef Fish Fishery's productive

structure.

 Analysis of the Price Equations


 Estimation of a system of price equations wherein the dependent

variable corresponds to an aggregate price of reef fish, as mentioned

previously, is an unfortunate result of severe data limitations. The

"price" variable measures the weighted average value per pound at'dock-

side received for the combined catch of grouper and red snapper. To

draw inferences from such estimated equations, it is crucial to under-

stand the implicit underlying assumptions of such a formulation.

 The basic assumption implicit in formulating the price equations in

terms of price of reef fish is that fishing is non-selective between

species groups. That is, vessels in the fishery direct fishing toward

no particular species group. Instead of fishing specifically for red

snapper or grouper, reef fish vessels merely fish for reef fish, with