A Study of the Averch-Johnson Hypothesis in the Telecommunications Industry
Jean Mirucki ()
Authors registered in the RePEc Author Service: Maria Mirucki
MPRA Paper from University Library of Munich, Germany
Abstract:
The purpose of this study is to test the Averch-Johnson hypothesis in Bell Canada based on time-series data covering the 1952-76 period and using a variety of options, ranging from different specifications of the production function, the method of calculation the cost of capital, and the segmentation of the whole sample into shorter samples. Results confirm the presence of the A-J effect and illustrate the sensitivity of our method of investigation, particularly with the segmentation option.
Keywords: Overcapitalisation; A-J Effect; Averch-Johnson Hypothesis; Cobb-Douglas Production Function; Cost of Capital (search for similar items in EconPapers)
JEL-codes: L51 L96 (search for similar items in EconPapers)
Date: 1980-07, Revised 1982
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Citations:
Published in Atlantic Economic Journal 1.XII(1984): pp. 121-121
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https://mpra.ub.uni-muenchen.de/29088/1/MPRA_paper_29088.pdf revised version (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:27727
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