A Dynamic Macroeconomic Based Model for the Us Telecommunications Industry

Abstract

Dynamic models have been used in most businesses serving different purposes. The increased changes of the Telecommunications environment have created a dynamic industry emerging new dynamic economic models. We investigate the Telecom industry by conducting macroeconomic infrastructural analysis for the period 1984-2003. The analysis is focused on several factors for example the infrastructure described by the Teledensity and the Telecom revenues in comparison with the US Gross Domestic Product (GDP). The purpose of this analysis is to understand the industries behavior and design appropriate economic dynamic model, detecting several trends and impact of certain events for example of the Telecom Act.

Keywords: Dynamic macroeconomic model, US Telecom industry, Teledensity

JEL Classification: O1, O5