Econometric Analysis of Broadband Subscriptions: A Note on Specification
5 Pages Posted: 14 May 2009 Last revised: 4 Sep 2014
Date Written: May 12, 2009
In this Perspective, I evaluate a common specification of econometric models of broadband adoption. Specifically, I consider the use of broadband plus dial-up connections, either lagged or contemporaneous, as a measure of market maturity. The variable is a model mispecification in that it imposes an invalid coefficient constraint. Monte Carlo tests demonstrate the potential for significant bias. Tests of the constraint are performed and the hypothesis of equal coefficients is rejected.
Keywords: Internet, Broadband, Telecommunications, Econometrics, Specification
JEL Classification: C5, L96
Suggested Citation: Suggested Citation