An Econometric Study of the Demand for First and Second Class Inland Letter Services.

A dynamic quarterly model for both first and second class U.K. inland letter traffic is estimated over the period 1976-88. The demand for first class letters is strongly influenced by aggregate expenditure, but for second class letters this linkage is much weaker. Both letter streams respond to changes in the price of first and second class letters, the price of telephone services, and "other prices" as measured by an aggregate price index. Copyright 1990 by MIT Press.