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An Estimation of UK Telephone Access Demand Using Pseudo-Panel Data

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Author Info
Katharina GASSNER
Abstract

The policy of rebalancing tariffs in the newly liberalised telecommunications market has given rise to concerns about universal service issues. The rise of connection and rental charges threatens to increase the number of disconnections and burden low-income groups in a disproportionate manner. In order to assess the validity of these fears, we estimate a telephone access demand model based on UK houshold data. We use a pseudo-panel technique to account for the repeated cross-section nature of the data. Our reseulats of small, but significant price elasticities with respect to connection charges, line rental, and household income are consistent with evidence from North America. Furthermore, we find a significant differential in the elasticity measured between high- and low-income groups.

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Publisher Info
Paper provided by Université de Lausanne, Faculté des HEC, DEEP in its series Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) with number 9817.

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Length: 25 pages
Date of creation: Oct 1998
Date of revision:
Publication status: Published in Utilities Policy, vol. 7 (3), December 1998, pp. 143-154.
Handle: RePEc:lau:crdeep:9817

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Postal: Université de Lausanne, Faculté des HEC, DEEP, Internef, CH-1015 Lausanne
Phone: ++41 21 692.33.64
Fax: ++41 21 692.33.65
Web page: http://www.hec.unil.ch/deep/publications-english/e-cahiers.htm

For technical questions regarding this item, or to correct its listing, contact: (Claudine Delapierre Saudan).

Related research
Keywords: universal service; telephone access; pseudo-panel data;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D18 - Microeconomics - - Household Behavior - - - Consumer Protection
D62 - Microeconomics - - Welfare Economics - - - Externalities

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kridel, Donald J & Taylor, Lester D, 1993. "The Demand for Commodity Packages: The Case of Telephone Custom Calling Features," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 362-68, May. [Downloadable!] (restricted)
  2. Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-43, May. [Downloadable!] (restricted)
  3. B.E. Davis & G.J. Caccappolo & M.A. Chaudry, 1973. "An Econometric Planning Model for American Telephone and Telegraph Company," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 29-56, Spring. [Downloadable!] (restricted)
  4. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126. [Downloadable!] (restricted)
  5. Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September. [Downloadable!] (restricted)
  6. Kenneth E. Train & Daniel L. McFadden & Moshe Ben-Akiva, 1987. "The Demand for Local Telephone Service: A Fully Discrete Model of Residential Calling Patterns and Service Choices," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 109-123, Spring. [Downloadable!] (restricted)
  7. Trotter, Stephen, 1996. "The Demand for Telephone Services," Applied Economics, Taylor and Francis Journals, vol. 28(2), pages 175-84, February. [Downloadable!] (restricted)
  8. Train, Kenneth E, 1994. "Self-Selecting Tariffs under Pure Preferences among Tariffs," Journal of Regulatory Economics, Springer, vol. 6(3), pages 247-64, September.
  9. Train, Kenneth E & Ben-Akiva, Moshe & Atherton, Terry, 1989. "Consumption Patterns and Self-selecting Tariffs," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 62-73, February. [Downloadable!] (restricted)
  10. Verbeek, Marno & Nijman, Theo, 1992. "Can Cohort Data Be Treated as Genuine Panel Data?," Empirical Economics, Springer, vol. 17(1), pages 9-23.
    Other versions:
  11. Cain, Paul & Macdonald, James M, 1991. "Telephone Pricing Structures: The Effects on Universal Service," Journal of Regulatory Economics, Springer, vol. 3(4), pages 293-308, December.
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