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Dynamics of a system of hard spheres with inelastic collisions is investigated. This system is a model for granular flow. The map induced by a shift along the trajectory does not preserve the volume of the phase space, and the corresponding Jacobian is different from one. A special distribution function is defined as the product of the usual distribution function and the squared Jacobian. For this distribution function, the Liouville equation with boundary condition is derived. A sequence of correlation functions is defined for canonical and grand canonical ensemble. The generalized BBGKY hierarchy and boundary condition are deduced for correlation functions.