Abstract
The paper is concerned with supply constraints in the provision of telecommunications services. As a measure of supply constraint we use the average waiting time for telephone connections. Duration models are employed to analyze a panel data set for 28 countries. In addition to economic variables, we consider the role of technical efficiency in causing supply constraints. Stochastic frontiers are used to determine the technical efficiency with which countries use labor and capital inputs to connect customers. When technical efficiency is included in duration models for waiting times until connection, we find that it is the major determinant.
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