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Interstate switched access demand analysis
Authors:Joseph P. Gatto   Jerry Langin-Hooper   Paul B. Robinson  Holly Tyan
Affiliation:1. Department of Clinical Medical Research Center, The Second Clinical Medical College, Jinan University (Shenzhen People’s Hospital), The First Affiliated Hospital of Southern University of Science and Technology, Shenzhen, Guangdong, PR China;2. University of Science and Technology, Shenzhen, Guangdong, PR China;3. Integrated Chinese and Western Medicine Postdoctoral Research Station, Jinan University, Guangzhou, Guangdong, PR China;4. Department of Pharmaceutical Sciences, College of Pharmacy and Health Sciences, St. John''s University, Queens, New York, USA;5. Shenzhen Aier Eye Hospital Affiliated to Jinan University, Shenzhen, Guangdong, PR China;6. Department of Biology, School of Medicine, Southern University of Science and Technology, Shenzhen, PR China;7. Shenzhen Public Service Platform on Tumor Precision Medicine and Molecular Diagnosis, The Second Clinical Medical College, Jinan University (Shenzhen People’s Hospital), Shenzhen, Guangdong, PR China;8. School of Life and Health Sciences, The Chinese University of Kong Hong, Shenzhen, PR China;1. College of Chemistry and Chemical Engineering, Key Laboratory of Sichuan Province for Fishes Conservation and Utilization in the Upper Reaches of the Yangtze River, Neijiang Normal University, Neijiang, Sichuan, 641100, China;2. Key Laboratory of Comprehensive and Highly Efficient Utilization of Salt Lake Resources, Qinghai Province Key Laboratory of Resources and Chemistry of Salt Lakes, Qinghai Institute of Salt Lakes, Chinese Academy of Sciences, Xining, Qinghai, 810008, China;3. State Key Laboratory of Water Environment Simulation, School of Environment, Beijing Normal University, Beijing, 100875, China;1. State Key Laboratory of Pulsed Power Laser Technology, National University of Defense Technology, Hefei, 230037, China;2. Anhui Province Key Laboratory of Electronic Restriction, National University of Defense Technology, Hefei, 230037, China;3. Key Laboratory of Ion Beam Bioengineering, Hefei Institutes of Physical Science, Chinese Academy of Sciences, Hefei, 230001, China;1. PhD Graduate Program in Restorative Dentistry, São Paulo State University (Unesp), Institute of Science and Technology, São José dos Campos, SP, Brazil;2. PhD Graduate Program in Oral Science (Prosthodontics Unit), Faculty of Odontology, Federal University of Santa Maria, Santa Maria, Rio Grande do Sul, Brazil;3. Department of Prosthodontics, Santo Amaro University, São Paulo, Brazil;4. Department of Prosthodontics and Periodontology, University of São Paulo, Bauru School of Dentistry, Brazil;5. Department of Dental Materials Science, Academic Centre for Dentistry Amsterdam (ACTA), Universiteit van Amsterdam and Vrije Universiteit, The Netherlands;1. Research Institute of Applied Mechanics and Electrodynamics, Moscow Aviation Institute, 5 Leningradskoe shosse, Moscow, POB 43, 125080, Russia;2. Moscow Aviation Institute (National Research University), 4 Volokolamskoye shosse, Moscow, 125993, Russia
Abstract:The breakup of the Bell System in 1984 led to the adoption by the Federal Communications Commission of a system of tariff charges that are paid to local exchange carriers by business and residential telephone subscribers, and interexchange carriers such as AT&T. These charges are designed to recover the costs associated with providing access to the public switched network to complete interstate calls. This system is known as the FCC Access Charge Plan. Flat-rate fees, named Subscriber Line Charges, are imposed on telephone subscribers, while usage-based charges are billed to interexchange carriers. These are called Carrier Common Line and Traffic Sensitive rates. Since CCL and TS rates are based on network usage, forecasts of switched access demand are required to set them properly.This paper presents an econometric model of interstate switched access demand developed and utilized by AT&T to produce forecasts of 1988 demand in connection with the Annual 1988 Access Tariff Filings. The model is estimated in a state-level pooled cross-sectional time-series framework, with dynamics introduced via polynomial distributed lags on price and income. It represents an extension of the econometric demand model developed and used by the FCC a year earlier to determine a reasonable forecast of 1987 Carrier Common Line switched access demand. Estimated demand elasticities and forecasts are provided. The model forecasts are also compared to those from other models.
Keywords:Switched access demand   demand modeling   AT&  T   demand elasticities   access charges   FCC   demand forecasts   fixed coefficient pooling   polynomial distributed lags
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