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Estimating demand elasticities of fixed telephony in Brazil

Gustavo, Manfrim and Sergio, Da Silva (2006): Estimating demand elasticities of fixed telephony in Brazil.

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Abstract

This paper provides estimates of the elasticities of demand for the Brazilian basic plan of local fixed telephony using a cointegration model. We find a long-run price elasticity of –0.24, and an income elasticity of 0.18. These figures are line with other countries’ estimates.

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