An Estimation of UK Telephone Access Demand Using Pseudo-Panel Data
AbstractThe 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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Bibliographic InfoPaper 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.
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.
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Postal: Université de Lausanne, Faculté des HEC, DEEP, Internef, CH-1015 Lausanne
Phone: ++41 21 692.33.64
Fax: ++41 21 692.33.05
Web page: http://www.hec.unil.ch/deep/publications/cahiers/series
More information through EDIRC
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
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