Econometric Analysis of Broadband Subscriptions: A Note on Specification

5 Pages Posted: 14 May 2009 Last revised: 4 Sep 2014

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Date Written: May 12, 2009

Abstract

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

Ford, George S., Econometric Analysis of Broadband Subscriptions: A Note on Specification (May 12, 2009). Available at SSRN: https://ssrn.com/abstract=1404263 or http://dx.doi.org/10.2139/ssrn.1404263

George S. Ford (Contact Author)

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

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Washington, DC 20015
United States

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