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Estimation of Price Elasticities for International Telecommunications Demand

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  • Christos Agiakloglou
  • Demetrius Yannelis

Abstract

This paper examines the effect of price per call minute on international telecommunications demand for calls made from Greece to five destination countries: Australia, the USA, Canada, the UK, and Germany. For this purpose the authors consider two different models, one with constant price elasticity, the log-linear demand function, and another one with time varying price elasticity, log-linear demand where all variables except price are in logarithms. These models were estimated for calls made during peak and off-peak periods, using quarterly data from 1997:I to 2003:IV. The outgoing traffic includes volume of calls in minutes made by the incumbent only and by the incumbent and the mobile providers. Copyright International Atlantic Economic Society 2006

Suggested Citation

  • Christos Agiakloglou & Demetrius Yannelis, 2006. "Estimation of Price Elasticities for International Telecommunications Demand," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 12(1), pages 131-137, February.
    • Handle: RePEc:kap:iaecre:v:12:y:2006:i:1:p:131-137:10.1007/s11294-005-2279-3
    DOI: 10.1007/s11294-005-2279-3
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    References listed on IDEAS

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    1. Munoz, Teresa Garin & Amaral, Teodosio Perez, 1996. "Demand for international telephone traffic in Spain: An econometric study using provincial panel data," Information Economics and Policy, Elsevier, vol. 8(4), pages 289-315, December.
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    7. Wright, Julian, 1999. "International Telecommunications, Settlement Rates, and the FCC," Journal of Regulatory Economics, Springer, vol. 15(3), pages 267-291, May.
    8. Lago, Armando M, 1970. "Demand Forecasting Models of International Telecommunications and their Policy Implications," Journal of Industrial Economics, Wiley Blackwell, vol. 19(1), pages 6-21, November.
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    More about this item

    Keywords

    C22; L96;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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