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Estimating Telephone Demand with State Decennial Census Data from 1970-1990

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  • Garbacz, Christopher
  • Thompson, Herbert G

Abstract

A telephone demand model (logit) is estimated with pooled Decennial Census data (1970, 1980 and 1990) for the states. Previous studies using pooled FCC penetration data are suspect due to large standard errors in the sample. Since our model includes data across time this allows the inclusion of long distance price and increases the variation in the standard variables. Time-effect dummy variables control for unobserved shifts in the data. Given that these dummy variables may pick up some of the effect of the long distance price, as well as other unobserved effects, their estimated impact is relatively small. Robust model results lead to the conclusion that elasticities decline through time. Furthermore, while subsidized penetration is more effective for targeted than untargeted programs, the cost per year of adding a household to the network is very high in either case (for 1990 about $5368 for untargeted; and for targeted $191 in 1990 and $1581 in 1998). Copyright 2002 by Kluwer Academic Publishers

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  • Garbacz, Christopher & Thompson, Herbert G, 2002. "Estimating Telephone Demand with State Decennial Census Data from 1970-1990," Journal of Regulatory Economics, Springer, vol. 21(3), pages 317-329, May.
    • Handle: RePEc:kap:regeco:v:21:y:2002:i:3:p:317-29
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    Cited by:

    1. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
    2. Jayakar, Krishna & Park, Eun-A, 2019. "Reforming the lifeline program: Regulatory federalism in action?," Telecommunications Policy, Elsevier, vol. 43(1), pages 67-75.
    3. Biancini, Sara, 2011. "Behind the scenes of the telecommunications miracle: An empirical analysis of the Indian market," Telecommunications Policy, Elsevier, vol. 35(3), pages 238-249, April.
    4. Chiang, Eric P. & Hauge, Janice A., 2013. "The impact of non-neutral federal regulatory policy on competition," Telecommunications Policy, Elsevier, vol. 37(11), pages 1142-1149.
    5. Nicholas Bloom & Renata Lemos & Raffaella Sadun & John Van Reenen, 2015. "Does Management Matter in schools?," Economic Journal, Royal Economic Society, vol. 0(584), pages 647-674, May.
    6. Ackerberg, Daniel A. & DeRemer, David R. & Riordan, Michael H. & Rosston, Gregory L. & Wimmer, Bradley S., 2014. "Estimating the impact of low-income universal service programs," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 84-98.
    7. Pérez Montes, Carlos, 2013. "Regulatory bias in the price structure of local telephone service," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 462-476.
    8. Chengguang Li & Rodrigo Isidor & Luis Alfonso Dau & Rudy Kabst, 2018. "The More the Merrier? Immigrant Share and Entrepreneurial Activities," Entrepreneurship Theory and Practice, , vol. 42(5), pages 698-733, September.
    9. Eric P. Chiang & Janice A. Hauge, 2007. "Funding Universal Service: The Effect of Telecommunications Subsidy Programs on Competition and Retail Prices," Working Papers 07-08, NET Institute, revised Aug 2007.
    10. Zolnierek, James & Clausen, Torsten, 2010. "Local telephone rate structure and telephone penetration: A universal service perspective," Information Economics and Policy, Elsevier, vol. 22(2), pages 153-163, May.
    11. Hauge, Janice A. & Jamison, Mark A. & Todd Jewell, R., 2008. "Discounting telephone service: An examination of participation in the Lifeline Assistance Program using panel data," Information Economics and Policy, Elsevier, vol. 20(2), pages 135-149, June.
    12. Daniel Ackerberg & Michael Riordan & Gregory Rosston & Bradley Wimmer, 2008. "Low-Income Demand for Local Telephone Service: Effects of Lifeline and Linkup," Discussion Papers 07-032, Stanford Institute for Economic Policy Research.
    13. De Clercq, Dirk & Meuleman, Miguel & Wright, Mike, 2012. "A cross-country investigation of micro-angel investment activity: The roles of new business opportunities and institutions," International Business Review, Elsevier, vol. 21(2), pages 117-129.
    14. Carlos Perez Montes, 2012. "Regulatory bias in the price structure of local telephone services," Working Papers 1201, Banco de España.
    15. Garbacz, Christopher & Thompson, Herbert Jr., 2005. "Universal telecommunication service: A world perspective," Information Economics and Policy, Elsevier, vol. 17(4), pages 495-512, October.
    16. Ford, George S., 2021. "Subsidies and substitution: An empirical study of the lifeline program," Telecommunications Policy, Elsevier, vol. 45(1).
    17. Latimaha, Rusli & Bahari, Zakaria, 2016. "Elasticity of Demand for Cellular Phone Network Access in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(2), pages 125-132.
    18. Danis, Wade M. & De Clercq, Dirk & Petricevic, Olga, 2011. "Are social networks more important for new business activity in emerging than developed economies? An empirical extension," International Business Review, Elsevier, vol. 20(4), pages 394-408, August.
    19. Holt, Lynne & Galligan, Mary, 2013. "Mapping the field: Retrospective of the federal universal service programs," Telecommunications Policy, Elsevier, vol. 37(9), pages 773-793.

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