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Econometric modeling of business Telecommunications demand using Retina and Finite Mixtues

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Marinucci, Massimiliano and Pérez Amaral, Teodosio (2005) Econometric modeling of business Telecommunications demand using Retina and Finite Mixtues. [ Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE); nº 01, 2005, ]

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Official URL: http://eprints.ucm.es/7863/


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Abstract

In this paper we estimate the business telecommunications demands for local, intra-LATA and inter-LATA services, using US data from a Bill Harvesting survey carried out during 1997. We model heterogeneity, which is present among firms due to a variety of different business telecommunication needs, by estimating normal heteroskedastic mixture regressions. The results show that a three-component mixture model fits the demand for local services well, while a two-component structure is used to model intra-LATA and inter-LATA demand. We characterize the groups in terms of their differences among the coefficients, and then use Retina to perform automatic model selection over an expanded candidate regressor set which includes heterogeneity parameters as well as transformations of the original variables.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Telecommunication Demand Models, Local calls, Inter-LATA calls, intra-LATA calls, Retina, Flexible Functional Forms, Heterogeneity, Finite Mixtures
Subjects:Social sciences > Economics > Econometrics
JEL:C21, C51, C52
Series Name:Documentos de Trabajo del Instituto Complutense de Análisis Económico (ICAE)
Volume:2005
Number:01
ID Code:7863
Deposited On:28 Apr 2008
Last Modified:04 Dec 2017 09:54

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