Estimating of Demand Function for Fixed Telephone Services with Linear Dynamic Almost Ideal Demand System Approach

Given the importance of communication in today's world, telecommunications equipment has become an integral part of community life. This paper deals with estimating the demand for fixed telephone services, which in a two way interaction, has increased due to the emergence of complementary products, such as the Internet and Fax, and has decreased due to the growing demand for substitute goods. In this paper, the almost ideal method of linear dynamic demand system is used. According to the results, the price elasticity of fixed telephones is -0.34. Also, the welfare effects of price fluctuations are calculated.