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The Structure of Production of the Spanish Telecommunications Sector

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  • Lopez, Elena

Abstract

The purpose of this paper is to provide empirical measures of the returns to scale coefficients, substitution elasticities between capital and labor, their marginal productivities, and the profitability of inputs in the Spanish telecommunications industry. The results of this study indicate that constant returns to scale can strongly be rejected and that the profitability indices of both factors have risen consistently since 1974. Furthermore, it concludes that the company is relatively overcapitalized, a result generally consistent with the Averch-Johnson effect for rate of return regulated monopolies.

Suggested Citation

  • Lopez, Elena, 1997. "The Structure of Production of the Spanish Telecommunications Sector," Empirical Economics, Springer, vol. 22(3), pages 321-330.
    • Handle: RePEc:spr:empeco:v:22:y:1997:i:3:p:321-30
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    Cited by:

    1. Harry Bloch & Gary Madden & Grant Coble‐Neal & Scott J. Savage, 2001. "The Cost Structure of Australian Telecommunications," The Economic Record, The Economic Society of Australia, vol. 77(239), pages 338-350, December.
    2. Prasad, Rohit, 2015. "The production function methodology for estimating the value of spectrum," Telecommunications Policy, Elsevier, vol. 39(1), pages 77-88.
    3. Rana, Md Sohel & Prasad, Rohit & Yoon, Hyenyoung & Hwang, Junseok, 2020. "Opportunity cost of spectrum for mobile communications: Evaluation of spectrum prices in Bangladesh," Telecommunications Policy, Elsevier, vol. 44(3).

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