The Impact of State Incentive Regulation on the U.S. Telecommunications Industry
Chunrong Ai and
Journal of Regulatory Economics, 2002, vol. 22, issue 2, 133-59
We examine the impact of state incentive regulation on network modernization, aggregate investment, revenue, cost, profit, and local service rates in the U.S. telecommunications industry between 1986 and 1999. We find evidence of greater network modernization under price cap regulation (PCR), earnings sharing regulation (ESR), and rate case moratoria (RCM) than under rate of return regulation (RORR). Costs are generally lower under RCM. Costs are also lower under ESR and PCR when local competition is sufficiently intense. Some local service rates for business customers are lower under PCR. Revenue, profit, aggregate investment, and residential local service rates do not vary systematically under incentive regulation relative to RORR. Copyright 2002 by Kluwer Academic Publishers
References: Add references at CitEc
Citations: View citations in EconPapers (58) Track citations by RSS feed
Downloads: (external link)
http://journals.kluweronline.com/issn/0922-680X/contents link to full text (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:regeco:v:22:y:2002:i:2:p:133-59
Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11149/PS2
Access Statistics for this article
Journal of Regulatory Economics is currently edited by Michael A. Crew
More articles in Journal of Regulatory Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().