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Telephone Communications in Canada: Demand, Production, and Investment Decisions

Author

Listed:
  • A. Rodney Dobell
  • Lester D. Taylor
  • Leonard Waverman
  • Tsuang-Hua Liu
  • Michael D. G. Copeland

Abstract

This paper presents a portion of an econometric model of the telecommunications industry in Canada, specifically dealing with demand, production, and investment decisions in the telephone sector. Following an introductory sketch of the structure of the sector is an analysis of demand for service, broken down where possible into business and residence, local and toll, categories. Estimation follows the procedures established by Houthakker and Taylor; the results suggest the presence of significant elements of habit formation with high income elasticities in all classes of demand for service, but indicate a substantial degree of price elasticity only in household demand for toll service.

Suggested Citation

  • A. Rodney Dobell & Lester D. Taylor & Leonard Waverman & Tsuang-Hua Liu & Michael D. G. Copeland, 1972. "Telephone Communications in Canada: Demand, Production, and Investment Decisions," Bell Journal of Economics, The RAND Corporation, vol. 3(1), pages 175-219, Spring.
    • Handle: RePEc:rje:bellje:v:3:y:1972:i:spring:p:175-219
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    Cited by:

    1. Majumdar, Sumit K., 1995. "Does new technology adoption pay? Electronic switching patterns and firm-level performance in US telecommunications," Research Policy, Elsevier, vol. 24(5), pages 803-822, September.
    2. Fitzroy A. Lee, 2001. "Imperfect Competition and Indirect Tax Structure in a Deregulated Telecommunications Sector," Public Finance Review, , vol. 29(6), pages 419-443, November.
    3. Hans Ouwersloot & Piet Rietveld, 1997. "On the Distance Dependence of the Price Elasticity of Telecommunications Demand; Meta-analysis, and Alternative Theoretical Backgrounds," Tinbergen Institute Discussion Papers 97-080/3, Tinbergen Institute.
    4. Mirucki, Jean, 1980. "Vérification des conditions d'efficacité dans la production chez Bell Canada [Checking the conditions of efficient production in Bell Canada]," MPRA Paper 30147, University Library of Munich, Germany, revised Jun 1980.
    5. Guldmann, Jean-Michel, 1998. "Intersectoral point-to-point telecommunication flows: theoretical framework and empirical results," Regional Science and Urban Economics, Elsevier, vol. 28(5), pages 585-609, September.
    6. John J. Beggs, 1981. "The Demand for Telephone Services in Australia and the Welfare Implications of Alternative Pricing Policies," Cowles Foundation Discussion Papers 584, Cowles Foundation for Research in Economics, Yale University.

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