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Supply Restricted Telecommunications Markets: The Effect of Technical Efficiency on Waiting Times

ROBERT BARTELS and TOWHIDUL ISLAM
Journal of Productivity Analysis
Vol. 18, No. 2 (September, 2002), pp. 161-169
Published by: Springer
Stable URL: http://www.jstor.org/stable/41770094
Page Count: 9
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Supply Restricted Telecommunications Markets: The Effect of Technical Efficiency on Waiting Times
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Abstract

The paper is concerned with supply constraints in the provision of telecommunications services. As a measure of supply constraint we use the average waiting time for telephone connections. Duration models are employed to analyze a panel data set for 28 countries. In addition to economic variables, we consider the role of technical efficiency in causing supply constraints. Stochastic frontiers are used to determine the technical efficiency with which countries use labor and capital inputs to connect customers. When technical efficiency is included in duration models for waiting times until connection, we find that it is the major determinant.

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