A search of the recent literature turned up only a handful of studies dealing with factor demand. In [ 1 ] labor demand functions were derived from a Cobb-Douglas production model and estimated for various types of labor in commercial banks. In [2] a labor demand function was included as one of three structural equations in a labor market model for registered nurses. The assumption of production function homotheticity was analyzed by estimating derived factor demand functions for the Japanese petroleum processing industry in [15]. The authors concluded that the production function is not homothetic. Demand functions for floor space, labor, and capital in the postal services industry were derived and estimated in [18] by using a generalized Cobb-Douglas production function. A final study [22] has considered factor demand at a level of aggregation above that for a specific industry. Factor demand was considered within a dynamic model and the various equations were estimated using quarterly data for total manufacturing. Considerable work has been conducted in the area of factor productivity (see [21] for a comprehensive review of the literature). Most of this work has concentrated on explaining the causes of productivity by using aggregate manufacturing data for groups of industries and countries. Studies of firms in a specific