We attempt to overcome the serious data problems of past telecommunications cost studies by focusing on local exchange carriers (LECs). With enough degrees of freedom to yield precise estimates, our global subadditivity tests show that the cost function is definitely not subadditive. The results...

Regulation of the cable television industry was marked by remarkable periods of deregulation, re-regulation, and re-deregulation during the 1980s and 1990s. Using FCC firm-level survey data spanning 1993 to 2001, we model and econometrically estimate the effect of regulation and competition on...

A persistent anomaly in option pricing is the volatility skew. Many have attempted to explain it with stochastic volatility and/or jump diffusion models with mixed results. We propose a model that incorporates positive serial correlation in the stock price process and test it on empirical data...

Regulation of the cable television industry was marked by remarkable periods of deregulation, re-regulation, and re-deregulation during the 1980s and 1990s. Using FCC firm-level survey data spanning 1993 to 2001, we model and econometrically estimate the effect of regulation and competition on...

The present paper develops and estimates a cost model for U.S. hospitals which enables us to analyze the cost of excess bed capacity. A new estimate is worth making for at least two reasons. First, recent changes in the economic environment in which hospitals operate has caused their utilization...