An Estimation of UK Telephone Access Demand Using Pseudo-Panel Data

Katharina Gassner

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: The policy of rebalancing tariffs in the newly liberalised telecommunications market has given rise to concerns about universal service issues. The rise of connection and rental charges threatens to increase the number of disconnections and burden low-income groups in a disproportionate manner. In order to assess the validity of these fears, we estimate a telephone access demand model based on UK houshold data. We use a pseudo-panel technique to account for the repeated cross-section nature of the data. Our reseulats of small, but significant price elasticities with respect to connection charges, line rental, and household income are consistent with evidence from North America. Furthermore, we find a significant differential in the elasticity measured between high- and low-income groups.

Keywords: universal service; telephone access; pseudo-panel data (search for similar items in EconPapers)
JEL-codes: D12 D18 D62 (search for similar items in EconPapers)
Pages: 25 pages
Date: 1998-10
New Economics Papers: this item is included in nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Utilities Policy, vol. 7 (3), December 1998, pp. 143-154.

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Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:9817

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