Estimating Diffusion Rates for Telecommunications: Evidence from European Union
AbstractWe study and evaluate the role of geographical, economic and social determinants of telecommunication services in European Union. We use a logistic model with spatial covariates to estimate the demand function for telecommunications in the Union. Our results show that different types of interconnections generate diverse rates of diffusion for country specific demand. The impact on telecommunications from countries with geographical, economic or social similarities differs based on those characteristics. Omitted variable bias from not modeling spatial interdependence is limited in models under spatial connectivity criteria. This satisfies the statistical inference drawn by previous empirical studies regarding determinants of telecommunications. On the other hand, it is worth noting that we find significant omitted telecommunications variable bias under economic or social connectivity criteria.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 45862.
Date of creation: 2006
Date of revision:
Publication status: Published in Journal of Applied Economics 1.XII(2009): pp. 11-32
Decay effect; Telephone traffic demand; Spatial econometrics;
Find related papers by JEL classification:
- F5 - International Economics - - International Relations, National Security, and International Political Economy
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
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