Quotation Hackl, Peter, Anders H., Westlund, 1995. On Price Elasticities of International Telecommunication Demand. Information Economics and Policy. 7 27-36.




In this empirical study, the price elasticity of the demand for telecommunication between Sweden and six destination countries, Germany (FRG), United Kingdom, USA, and the three Scandinavian countries Denmark, Finland, and Norway, is investigated. A linear regression model in logarithmic transforms of all variables is specified. To allow for time-varying regression coefficients the moving local regression technique is used to estimate the trajectory of the coefficients. The results of our study can be summarized as follows. For all countries except the USA, the (absolute) price elasticity increases over the observation period 1976–1990. The US price elasticity is close to zero, whereas the demand is relatively price elastic for the European countries. Our analysis shows that a model with constant price elasticities would be misleading when observations over a longer time period are analyzed. An appropriate method of analysis is suggested.


Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Information Economics and Policy
Citation Index SSCI
WU-Journal-Rating new VW-D
Language English
Title On Price Elasticities of International Telecommunication Demand
Volume 7
Year 1995
Page from 27
Page to 36
URL https://www.sciencedirect.com/science/article/pii/016762459400023Y?via%3Dihub
DOI https://doi.org/10.1016/0167-6245(94)00023-Y
Open Access N


Hackl, Peter (Former researcher)
Anders H., Westlund, (Handelshögskolan, Sweden)
Research areas (ÖSTAT Classification 'Statistik Austria')
1113 Mathematical statistics (Details)
5323 Econometrics (Details)
5701 Applied statistics (Details)
Google Scholar: Search