Productivity Growth in Telecommunications: The Case of Tennessee

Christopher C. Klein

No 200714, Working Papers from Middle Tennessee State University, Department of Economics and Finance

Abstract: A divisia index of total factor productivity (TFP) growth is calculated for each of 16 regulated local telephone companies operating in Tennessee over the years 1989 through 1993. Year over year changes in TFP, in Tornqvist form, yield a growth in total factor productivity estimate for each company. These growth rates, however, contain the effects of both scale and technical change. Using the method suggested by Caves and Christensen, the effects are decomposed indirectly by regressing the annual percentage changes in TFP growth against measures of scale, service density, and network size. The results are consistent with the findings of economies of density and nearly constant returns to scale prevalent in the telecommunications literature.

Keywords: total factor productivity; telecommunications; network size (search for similar items in EconPapers)
JEL-codes: L51 L96 O30 (search for similar items in EconPapers)
Date: 2007-08
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://capone.mtsu.edu/berc/working/TFPRUT-07WP.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mts:wpaper:200714

Access Statistics for this paper

More papers in Working Papers from Middle Tennessee State University, Department of Economics and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Benjamin Jansen ().