The problem of kilometer-scale irregularities in the daytime equatorial electrojet is revisited by means of an eigenmode analysis of the gradient drift instability. Realistic physical parameters are used, including the modeled altitude variations of ion and electron collision frequencies and mobilities. The full fourth-order system of two coupled differential equations (each of second order) for the density and electrostatic potential perturbations is solved numerically by a relaxation technique. Undre some approximations, the fourth-order system can be shown to reduce to a second-order differential equation for the perturbed potential or density. The latter is solved using a shooting technique and provides initial guesses for numerical solutions to the full problem. It is shown that the linear growth rate peaks for kilometer-scale waves, contrary to the findings of recent initial-value studies. This occurs because the equilibrium velocity shear is much more effective as a damping mechanism for short-wavelength modes than it is for the longer, kilometer-scale modes. These results provide a natural qualitative explanation for the observed dominance of kilometer-scale structures in the daytime electrojet spectrum. ¿ American Geophysical Union 1994