publication . Preprint . 2013

Estimating the Impact of Low-Income Universal Service Programs

Daniel A. Ackerberg; David R. DeRemer; Michael H. Riordan; Gregory L. Rosston; Bradley S. Wimmer;
Open Access
  • Published: 01 Apr 2013
Abstract
This policy study uses U.S. Census microdata to evaluate how subsidies for universal telephone service vary in their impact across low-income racial groups, gender, age, and home ownership. Our demand specification includes both the subsidized monthly price (Lifeline program) and the subsidized initial connection price (Linkup program) for local telephone service. Our quasi-maximum likelihood estimation controls for location differences and instruments for price endogeneity. The microdata allow us to estimate the effects of demographics on both elasticities of telephone penetration and the level of telephone penetration. Based on our preferred estimates, the sub...
34 references, page 1 of 3

Ackerberg, D., M. Riordan, G. Rosston, and B. Wimmer (2009), “Low-Income Demand for Local Telephone Service: Effects of Lifeline and Linkup,” Stanford Institute for Economic Policy Research, Discussion Paper No. 08-047. [OpenAIRE]

Ackerberg, D., M. Riordan, G. Rosston, and B. Wimmer (2011), “Low-Income Demand for Local Telephone Service: Effects of Lifeline and Linkup,” mimeo.

Adams, William, Liran Einav, and Jonathan Levin (2009), “Liquidity Constraints and Imperfect Information in Subprime Lending,” American Economic Review, 99(1): 49-84.

Avery, R.B., L.P. Hansen, and V.J. Hotz (1983), “Multi Period Probit Models and Orthogonality Condition Estimation,” International Economic Review 24: 21-35.

Belinfante, A. (2001) “Telephone Subscribership in the United States,” Federal Communications Commission, Industry Analysis Division.

Berry, S., J. Levinsohn, and A. Pakes (1995), “Automobile Prices in Market Equilibrium," Econometrica, 63(4): 841-890. [OpenAIRE]

Blinder, A. S. (1973), “Wage Discrimination: Reduced Form and Structural Estimates”, Journal of Human Resources 8: 436-455

Cain, P. and J. P. MacDonald (1991), “Telephone Pricing Structures: The Effects of Universal Service,” Journal of Regulatory Economics, 3: 293-308.

Center for Media Education/ Center for Policy Alternatives (1999), “Sorry, No Number!” dated October 21, 1999, posted at www.stateaction.com.

Claritas (2003), “Block Group to Wirecenter Cross Reference,” electronic file provided by Claritas, Ithaca, NY.

Crandall, R., and L. Waverman (2000), Who Pays for Universal Service? When Telephone Subsidies Become Transparent, Washington, DC: Brookings.

Elder, T. Goddeeris, J. and S. Haider (2012) “Isolating the Role of Individual Covariates in Reweighting Estimation” mimeo, Michigan State University

Erikson, R., Kaserman, D. and J. Mayo (1998), “Targeted and Untargeted Subsidy Schemes: Evidence from Post-Divestiture Efforts to Promote Universal Service,” Journal of Law and Economics, 41: 477-502. [OpenAIRE]

Estache A., and L. Wren-Lewis (2009) “Toward a Theory of Regulation for Developing Countries: Following Jean-Jacques Laffont's Lead,” Journal of Economic Literature, 47 (3), 729-70. [OpenAIRE]

Federal Communications Commission (1996), “Common Carrier Competition”.

34 references, page 1 of 3
Abstract
This policy study uses U.S. Census microdata to evaluate how subsidies for universal telephone service vary in their impact across low-income racial groups, gender, age, and home ownership. Our demand specification includes both the subsidized monthly price (Lifeline program) and the subsidized initial connection price (Linkup program) for local telephone service. Our quasi-maximum likelihood estimation controls for location differences and instruments for price endogeneity. The microdata allow us to estimate the effects of demographics on both elasticities of telephone penetration and the level of telephone penetration. Based on our preferred estimates, the sub...
34 references, page 1 of 3

Ackerberg, D., M. Riordan, G. Rosston, and B. Wimmer (2009), “Low-Income Demand for Local Telephone Service: Effects of Lifeline and Linkup,” Stanford Institute for Economic Policy Research, Discussion Paper No. 08-047. [OpenAIRE]

Ackerberg, D., M. Riordan, G. Rosston, and B. Wimmer (2011), “Low-Income Demand for Local Telephone Service: Effects of Lifeline and Linkup,” mimeo.

Adams, William, Liran Einav, and Jonathan Levin (2009), “Liquidity Constraints and Imperfect Information in Subprime Lending,” American Economic Review, 99(1): 49-84.

Avery, R.B., L.P. Hansen, and V.J. Hotz (1983), “Multi Period Probit Models and Orthogonality Condition Estimation,” International Economic Review 24: 21-35.

Belinfante, A. (2001) “Telephone Subscribership in the United States,” Federal Communications Commission, Industry Analysis Division.

Berry, S., J. Levinsohn, and A. Pakes (1995), “Automobile Prices in Market Equilibrium," Econometrica, 63(4): 841-890. [OpenAIRE]

Blinder, A. S. (1973), “Wage Discrimination: Reduced Form and Structural Estimates”, Journal of Human Resources 8: 436-455

Cain, P. and J. P. MacDonald (1991), “Telephone Pricing Structures: The Effects of Universal Service,” Journal of Regulatory Economics, 3: 293-308.

Center for Media Education/ Center for Policy Alternatives (1999), “Sorry, No Number!” dated October 21, 1999, posted at www.stateaction.com.

Claritas (2003), “Block Group to Wirecenter Cross Reference,” electronic file provided by Claritas, Ithaca, NY.

Crandall, R., and L. Waverman (2000), Who Pays for Universal Service? When Telephone Subsidies Become Transparent, Washington, DC: Brookings.

Elder, T. Goddeeris, J. and S. Haider (2012) “Isolating the Role of Individual Covariates in Reweighting Estimation” mimeo, Michigan State University

Erikson, R., Kaserman, D. and J. Mayo (1998), “Targeted and Untargeted Subsidy Schemes: Evidence from Post-Divestiture Efforts to Promote Universal Service,” Journal of Law and Economics, 41: 477-502. [OpenAIRE]

Estache A., and L. Wren-Lewis (2009) “Toward a Theory of Regulation for Developing Countries: Following Jean-Jacques Laffont's Lead,” Journal of Economic Literature, 47 (3), 729-70. [OpenAIRE]

Federal Communications Commission (1996), “Common Carrier Competition”.

34 references, page 1 of 3
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publication . Preprint . 2013

Estimating the Impact of Low-Income Universal Service Programs

Daniel A. Ackerberg; David R. DeRemer; Michael H. Riordan; Gregory L. Rosston; Bradley S. Wimmer;