Cost structure of the local telecommunications industry Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/fq977x52b

Descriptions

Attribute NameValues
Creator
Abstract or Summary
  • Using a panel data set on the local telecommunications companies reporting to the FCC for 1988-95, this paper investigates the subadditivity of the cost function, as well as technical and allocative inefficiency of the U.S. local telephone industry. The subadditivity test on the estimated translog cost function indicates that certain subdivisions of the monopolized regional markets between two hypothetical firms might lower total cost. However, the evidence is not as clear cut as in an earlier study by Shin and Ying (1992, RAND), with savings from a two-firm industry being negative on average over all possible two-firm output vector combinations. The results of the subadditivity test suggest that companies with a relatively high share of residential customers experience higher degrees of scale inefficiency. Specification of technical inefficiency as fixed company-specific effects results in a different efficiency ranking than the specification with random effects. The estimation results for the generalized (non-minimum) cost model suggest that capital is being under-employed relative to residual inputs. This finding does not support the theoretical prediction that an industry under rate of return regulation tends to over-employ capital relative to other inputs. The subadditivity test for the generalized cost function that accounts for technical and allocative inefficiency generated a much more favorable estimates of cost reductions from the subdivision of the monopolized markets than the test on the conventional specification of the cost function. The estimated losses from technical, allocative and scale inefficiency reflect potential gains from competition.
Resource Type
Date Available
Date Copyright
Date Issued
Degree Level
Degree Name
Degree Field
Degree Grantor
Commencement Year
Advisor
Committee Member
Academic Affiliation
Non-Academic Affiliation
Subject
Rights Statement
Peer Reviewed
Language
Digitization Specifications
  • File scanned at 300 ppi (Monochrome) using Capture Perfect 3.0.82 on a Canon DR-9080C in PDF format. CVista PdfCompressor 4.0 was used for pdf compression and textual OCR.
Replaces
Additional Information
  • description.provenance : Approved for entry into archive by Patricia Black(patricia.black@oregonstate.edu) on 2012-09-25T20:56:22Z (GMT) No. of bitstreams: 1 GainutdinovaOlesya1999.pdf: 5656810 bytes, checksum: 1309f72dc4d88c359cab3b8e3fdc6aaa (MD5)
  • description.provenance : Approved for entry into archive by Patricia Black(patricia.black@oregonstate.edu) on 2012-09-25T20:55:03Z (GMT) No. of bitstreams: 1 GainutdinovaOlesya1999.pdf: 5656810 bytes, checksum: 1309f72dc4d88c359cab3b8e3fdc6aaa (MD5)
  • description.provenance : Submitted by Erin Clark (ecscannerosu@gmail.com) on 2012-09-25T19:13:56Z No. of bitstreams: 1 GainutdinovaOlesya1999.pdf: 5656810 bytes, checksum: 1309f72dc4d88c359cab3b8e3fdc6aaa (MD5)
  • description.provenance : Made available in DSpace on 2012-09-25T20:56:22Z (GMT). No. of bitstreams: 1 GainutdinovaOlesya1999.pdf: 5656810 bytes, checksum: 1309f72dc4d88c359cab3b8e3fdc6aaa (MD5) Previous issue date: 1999-02-12

Relationships

In Administrative Set:
Last modified: 08/09/2017

Downloadable Content

Download PDF
Citations:

EndNote | Zotero | Mendeley

Items