IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/1978.html
   My bibliography  Save this paper

Estimating demand elasticities of fixed telephony in Brazil

Author

Listed:
  • Gustavo, Manfrim
  • Sergio, Da Silva

Abstract

This paper provides estimates of the elasticities of demand for the Brazilian basic plan of local fixed telephony using a cointegration model. We find a long-run price elasticity of –0.24, and an income elasticity of 0.18. These figures are line with other countries’ estimates.

Suggested Citation

  • Gustavo, Manfrim & Sergio, Da Silva, 2006. "Estimating demand elasticities of fixed telephony in Brazil," MPRA Paper 1978, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1978
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/1978/1/MPRA_paper_1978.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Amaral, Teodosio Perez & Gonzalez, Francisco Alvarez & Jimenez, Bernardo Moreno, 1995. "Business telephone traffic demand in Spain: 1980-1991, an econometric approach," Information Economics and Policy, Elsevier, vol. 7(2), pages 115-134, June.
    2. Cain, Paul & Macdonald, James M, 1991. "Telephone Pricing Structures: The Effects on Universal Service," Journal of Regulatory Economics, Springer, vol. 3(4), pages 293-308, December.
    3. Appelbe, T. W. & Snihur, N. A. & Dineen, C. & Farnes, D. & Giordano, R., 1988. "Point-to-point modelling: An application to Canada-Canada and Canada-United States long distance calling," Information Economics and Policy, Elsevier, vol. 3(4), pages 311-331.
    4. Train, Kenneth E., 1993. "Intra-LATA toll elasticities," Telecommunications Policy, Elsevier, vol. 17(9), pages 707-713, December.
    5. Manenti, Fabio M, 2001. "On the Impact of "Callback" Competition on International Telephony," Journal of Regulatory Economics, Springer, vol. 20(1), pages 21-41, July.
    6. Madden, Gary & Bloch, Harry & Hensher, David, 1993. "Australian telephone network subscription and calling demands: evidence from a stated-preference experiment," Information Economics and Policy, Elsevier, vol. 5(3), pages 207-230, October.
    7. Carlos Martins-Filho & John W. Mayo, 1993. "Demand and Pricing of Telecommunications Services: Evidence and Welfare Implications," RAND Journal of Economics, The RAND Corporation, vol. 24(3), pages 439-454, Autumn.
    8. Sridhar Narayanan & Pradeep Chintagunta & Eugenio Miravete, 2007. "The role of self selection, usage uncertainty and learning in the demand for local telephone service," Quantitative Marketing and Economics (QME), Springer, vol. 5(1), pages 1-34, March.
    9. Bodnar & Peter Dilworth & Salvatore Iacono, Judith, 1988. "Cross-sectional analysis of residential telephone subscription in Canada," Information Economics and Policy, Elsevier, vol. 3(4), pages 355-378.
    10. Park, Rolla Edward & Wetzel, Bruce M & Mitchell, Bridger M, 1983. "Price Elasticities for Local Telephone Calls," Econometrica, Econometric Society, vol. 51(6), pages 1699-1730, November.
    11. Acton, Jan Paul & Vogelsang, Ingo, 1992. "Telephone Demand over the Atlantic: Evidence from Country-Pair Data," Journal of Industrial Economics, Wiley Blackwell, vol. 40(3), pages 305-323, September.
    12. Teresa Garin-Munoz & Teodosio Perez Amaral, 2000. "An econometric model for international tourism flows to Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 7(8), pages 525-529.
    13. Facanha, Luis Otavio & Resende, Marcelo, 2004. "Price cap regulation, incentives and quality:: The case of Brazilian telecommunications," International Journal of Production Economics, Elsevier, vol. 92(2), pages 133-144, November.
    14. Gatto, Joseph P. & Langin-Hooper, Jerry & Robinson, Paul B. & Tyan, Holly, 1988. "Interstate switched access demand analysis," Information Economics and Policy, Elsevier, vol. 3(4), pages 333-358.
    15. J. Gregory Sidak & William Baumol, 1994. "Toward Competition in Local Telephony," Books, American Enterprise Institute, number 52984, September.
    16. B.E. Davis & G.J. Caccappolo & M.A. Chaudry, 1973. "An Econometric Planning Model for American Telephone and Telegraph Company," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 29-56, Spring.
    17. Duncan, Gregory M. & Perry, Donald M., 1994. "IntraLATA toll demand modeling: a dynamic analysis of revenue and usage data," Information Economics and Policy, Elsevier, vol. 6(2), pages 163-178, July.
    18. José Gallardo & Alberto Pasco-Font & Valerie Fry, 1999. "La Demanda Residencial de Telefonía Básica en el Perú," Libros no PUCP / Books other publishers, Otras editoriales / Other publishers, edition 1, number otr-1999-07, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ralf Dewenter & Justus Haucap, 2007. "Demand Elasticities for Mobile Telecommunications in Austria," Ruhr Economic Papers 0017, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. repec:zbw:rwirep:0017 is not listed on IDEAS
    3. Dewenter Ralf & Haucap Justus, 2008. "Demand Elasticities for Mobile Telecommunications in Austria," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(1), pages 49-63, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ebl:ecbull:v:12:y:2007:i:5:p:1-9 is not listed on IDEAS
    2. Guldmann, Jean-Michel, 1998. "Intersectoral point-to-point telecommunication flows: theoretical framework and empirical results," Regional Science and Urban Economics, Elsevier, vol. 28(5), pages 585-609, September.
    3. Mongkolporn, Veerasak & Yin, Xiangkang, 2005. "How does the entry of new firms change demand? An empirical estimation for a Thai telecommunications company," Journal of Asian Economics, Elsevier, vol. 16(4), pages 688-703, August.
    4. Hans Ouwersloot & Piet Rietveld, 1997. "On the Distance Dependence of the Price Elasticity of Telecommunications Demand; Meta-analysis, and Alternative Theoretical Backgrounds," Tinbergen Institute Discussion Papers 97-080/3, Tinbergen Institute.
    5. Segendorff, Björn, 1995. "The Telecommunication Market: A Survey of Theory and Empirics," Working Paper Series 442, Research Institute of Industrial Economics.
    6. Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45788, University Library of Munich, Germany.
    7. 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.
    8. Bölcskei, Vanda, 2010. "A távbeszélő-szolgáltatások keresleti modelljeinek áttekintése - különös tekintettel a vezetékes és mobilszolgáltatások közötti helyettesítés becslésére [A review of the demand models of telephone ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 517-535.
    9. Einhorn, Michael A., 2002. "International telephony: a review of the literature," Information Economics and Policy, Elsevier, vol. 14(1), pages 51-73, March.
    10. Agiakloglou, Christos & Karkalakos, Sotiris, 2006. "Estimating Diffusion Rates for Telecommunications: Evidence from European Union," MPRA Paper 45862, University Library of Munich, Germany.
    11. Peter J. Danaher, 2002. "Optimal Pricing of New Subscription Services: Analysis of a Market Experiment," Marketing Science, INFORMS, vol. 21(2), pages 119-138, February.
    12. Gassner, Katharina, 1998. "An estimation of UK telephone access demand using Pseudo-Panel data," Utilities Policy, Elsevier, vol. 7(3), pages 143-154, November.
    13. Basalisco, Bruno, 2012. "The effect of user interaction on the demand for mobile text messages: Evidence from cross-country data," Information Economics and Policy, Elsevier, vol. 24(2), pages 132-144.
    14. Kridel, Donald J. & Rappoport, Paul N. & Taylor, Lester D., 2002. "IntraLATA long-distance demand: carrier choice, usage demand and price elasticities," International Journal of Forecasting, Elsevier, vol. 18(4), pages 545-559.
    15. Karikari, John A. & Gyimah-Brempong, Kwabena, 1999. "Demand for international telephone services between US and Africa," Information Economics and Policy, Elsevier, vol. 11(4), pages 407-435, December.
    16. Anja Lambrecht & Katja Seim & Bernd Skiera, 2007. "Does Uncertainty Matter? Consumer Behavior Under Three-Part Tariffs," Marketing Science, INFORMS, vol. 26(5), pages 698-710, 09-10.
    17. Jean-Michel Guldmann, 1998. "Competing destinations and intervening opportunities interaction models of inter-city telecommunication flows," ERSA conference papers ersa98p120, European Regional Science Association.
    18. Madden, Gary & Savage, Scott J. & Tipping, Craig, 2001. "Understanding European Union international message telephone services demand," Information Economics and Policy, Elsevier, vol. 13(2), pages 127-136, June.
    19. Eriksson, Ross C & Kaserman, David L & Mayo, John W, 1998. "Targeted and Untargeted Subsidy Schemes: Evidence from Postdivestiture Efforts to Promote Universal Telephone Service," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 477-502, October.
    20. Rodriguez-Andres, Antonio & Perez-Amaral, Teodosio, 1998. "Demand for telephone lines and universal service in Spain," Information Economics and Policy, Elsevier, vol. 10(4), pages 501-514, December.
    21. repec:kap:iaecre:v:12:y:2006:i:1:p:131-137 is not listed on IDEAS
    22. 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.

    More about this item

    Keywords

    Fixed telephony; Demand elasticities; Cointegration;
    All these keywords.

    JEL classification:

    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L5 - Industrial Organization - - Regulation and Industrial Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1978. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.