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

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  • Garbacz, Christopher
  • Thompson, Herbert G
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    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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    Bibliographic Info

    Article provided by Springer in its journal Journal of Regulatory Economics.

    Volume (Year): 21 (2002)
    Issue (Month): 3 (May)
    Pages: 317-29

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    Handle: RePEc:kap:regeco:v:21:y:2002:i:3:p:317-29

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    Web page: http://www.springerlink.com/link.asp?id=100298

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    Cited by:
    1. Daniel A. Ackerberg & David R. DeRemer & Michael H. Riordan & Gregory L. Rosston & Bradley S. Wimmer, 2013. "Estimating the Impact of Low-Income Universal Service Programs," Working Papers 13-33, Center for Economic Studies, U.S. Census Bureau.
    2. 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.
    3. Sara Biancini, 2010. "Behind the Scenes of the Telecommunications Miracle: An Empirical Analysis of the Indian Market," CESifo Working Paper Series 3286, CESifo Group Munich.
    4. 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.
    5. 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.
    6. PĂ©rez 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.
    7. 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.
    8. Nicholas Bloom & Renata Lemos & Raffaella Sadun & John Van Reenen, 2014. "Does Management Matter In Schools," Discussion Papers 13-032, Stanford Institute for Economic Policy Research.

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