Abstract
Aggregate time series and point-to-point panel data approaches to modelling Canadian long distance calling are compared. It is found that, while both models yield similar sets of aggregate elasticities, the point-to-point panel data models provide more detailed information on consumer behavior. Furthermore, the panel data models take advantage of the disaggregate data available and avoid the problems inherent in aggregate models when the rates of changes in the micro data are different.
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Cheng Hsiao's work is supported in part by National Science Foundation grant SES 88-21205. We wish to thank referees for helpful comments.
Telecom Canada is an association of the major Canadian Telephone companies that was formed to manage, among other things, the transmission of long distance calls between the companies.
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Appelbe, T.W., Dineen, C.R., Solvason, D.L. et al. Econometric modelling of Canadian long distance calling: A comparison of aggregate time series versus point-to-point panel data approaches. Empirical Economics 17, 125–140 (1992). https://doi.org/10.1007/BF01192479
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DOI: https://doi.org/10.1007/BF01192479