IntraLATA toll demand modeling: a dynamic analysis of revenue and usage data

This analysis presents some of the first available estimates of IntraLATA toll demand elasticities. Using a combination of time-series and conventional econometric modeling, specifically an autoregressive-distributed lag, where the long run elasticities are parameters estimated in a nonlinear system, we find the demand elasticity for IntraLATA toll is -0:38. We also include some discussion of the use of these and other estimates in a recent regulatory hearing.