Demand Elasticities for International Message Telephone Service

5 Pages Posted: 10 Sep 2010

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

John D. Jackson

Auburn University - Department of Economics

Date Written: 2004

Abstract

Using a point-to-point model of toll demand, this paper provides estimates of own-price demand elasticities for international message telephone service. The study improves on previous studies by using more recent data and endogenizing price. Consistent with earlier studies, the demand for IMTS is found to be price inelastic, about -0.28 on average, in the short-run and near unitary elastic, -1.04 on average, in the long run. Both the level and the elasticity of demand are found to be positively related to the size of the telephone network. The own-price elasticity of demand for a select group of countries is provided.

Keywords: Telecommunications, International, Demand Elasticities, ITMS, FCC

JEL Classification: F1, L96

Suggested Citation

Ford, George S. and Jackson, John Douglas, Demand Elasticities for International Message Telephone Service (2004). Applied Economics, Vol. 36, p. 1523, 2004. Available at SSRN: https://ssrn.com/abstract=1674564

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

John Douglas Jackson

Auburn University - Department of Economics ( email )

415 W. Magnolia
Auburn, AL 36849-5242
United States

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