Econometric modeling of business Telecommunications demand using Retina and Finite Mixtues

Massimiliano Marinucci () and Teodosio Pérez-Amaral

Documentos de Trabajo del ICAE from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico

Abstract: In this paper we estimate the business telecommunications demands for local, intra-LATA and inter-LATA services, using US data from a Bill Harvesting R survey carried out during 1997. We model heterogeneity, which is present among firms due to a variety of different business telecommunication needs, by estimating normal heteroskedastic mixture regressions. The results show that a three-component mixture model fits the demand for local services well, while a two-component structure is used to model intra-LATA and inter-LATA demand. We characterize the groups in terms of their differences among the coefficients, and then use Retina to perform automatic model selection over an expanded candidate regressor set which includes heterogeneity parameters as well as transformations of the original variables.

Keywords: Telecommunication Demand Models; Local calls; Inter-LATA calls; intra-LATA calls; Retina; Flexible Functional Forms; Heterogeneity; Finite Mixtures. (search for similar items in EconPapers)
JEL-codes: C21 C51 C52 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2005
New Economics Papers: this item is included in nep-bec and nep-net
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Working Paper: Econometric Modeling of Business Telecommunications Demand using RETINA and Finite Mixtures (2005)
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