Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/79436 
Year of Publication: 
2000
Series/Report no.: 
Working Paper No. 00-11
Publisher: 
University of California, Department of Economics, Davis, CA
Abstract: 
The effects that regulation has on the innovation and the introduction of new telecommunications services have not been previously quantified in the literature. This study compares state-regulated services in Indiana under rate of return regulation (RoRR) and under alternative regulation. The econometric model comprises an count process (for innovation) followed by a duration process with selection (for regulatory delay). Moving away from RoRR increased the rate of service creation to three times the old rate. Expected approval delays nearly disappear. A prediction exercise indicates that the firm would have introduced 12 times as many services to consumers if the alternative regulation had been in place the entire time.
Subjects: 
regulation
product innovation
telecommunications
count data
duration data
tobit model
Document Type: 
Working Paper

Files in This Item:
File
Size
347.45 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.