Telecommunications and Regulatory Reform: Methods and Applications
Sosa-Escudero, Walter Esteban
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https://hdl.handle.net/2142/85633
Description
Title
Telecommunications and Regulatory Reform: Methods and Applications
Author(s)
Sosa-Escudero, Walter Esteban
Issue Date
1998
Doctoral Committee Chair(s)
Shane Greenstein
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Commerce-Business
Language
eng
Abstract
The third chapter explores the relationship between firm revenues and infrastructure in the US telecommunications industry using quantile regression methods. Under certain assumptions such a relationship is used to measure the welfare impact of infrastructure development. It also provides a quantification of the revenue incentives firms have to invest in additional infrastructure. We use a general econometric methodology that allows us to explore the complete distribution of revenues conditional on infrastructure. Our most important finding is that, controlling for other factors, marginal revenue returns to investment in infrastructure decrease with firm size as measured by its revenues.
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