Estimating Demand Elasticities of Fixed Telephony in Brazil

Gustavo Manfrim, National Telecommunications Agency
Sergio Da Silva, Federal University of Santa Catarina

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 in line with other countries’ estimates.