Statistical Negligence in Title II Impact Analysis

8 Pages Posted: 31 Oct 2019

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Date Written: October 1, 2019

Abstract

This article provides a review of Chris Hooton's recent paper "Testing the Economics of the Net Neutrality Debate." While Hooton claims he has found the Holy Grail of investment data, Hooton’s chosen measure of capital spending is not capital spending at all. Capital Expenditures Incurred But Not Yet Paid — Hooton’s measure of investment — is a credit entry for accrued expenses. It does not equal capital spending; it equals, as the name implies, the portion of capital spending incurred in the past to be paid in the future. Not all firms use this supplemental account. In fact, AT&T and Verizon do not appear in Hooton’s sample at all. That is, Hooton’s analysis excludes the two largest capital spenders in the nation, if not the world.

Keywords: Testing the Economics of the Net Neutrality Debate, Net Neutrality, Hooton, Investment

JEL Classification: L96, O1, L5, C5

Suggested Citation

Ford, George S., Statistical Negligence in Title II Impact Analysis (October 1, 2019). Available at SSRN: https://ssrn.com/abstract=3473013

George S. Ford (Contact Author)

Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )

5335 Wisconsin Avenue, NW
Suite 440
Washington, DC 20015
United States

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