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An Empirical Analysis Of Regulator Mandates On The Pass Through Of Switched Access Fees For In-State Long-Distance Telecommunications In The U.S., Debra J. Aron, David E. Burnstein, Ana Danies, Gerry Keith

Debra J. Aron

In the parlance of regulatory economics, “pass through” refers to the effect of a change in an incremental cost – generally, the effect of a change in a regulated input price – on the retail price of a good or service. In this paper we examine pass through with regard to the switched access fees paid by long distance companies to local exchange carriers in the United States. We estimate the degree to which long distance companies pass through differences in access rates to their customers, and we examine whether mandates imposed by regulators on long distance companies to pass …