Table 2-4 Effects of Changes in Explanatory Variables on UNE Rates Two Years Later
Effect of a One
Explanatory Variable Unit Increase Economic Effect1
Effect of Neighbors' Rates
0.73 ** 2.47 **
Leader's Rate on Followers (C) .72.7
(2.57) (2.57)
-0.35 -1.10
Followers' Rates on Followers (C)-.031.
(-1.03) (-1.03)97 *
Followers' Rates on Leaders (C) 1..91
(1.91) (1.91)
Effect of Other Explanatory Variables
0.40 *** 1.68 ***
Cost (C) 0.40 1.68
(3.65) (3.65)
Percent of Commissioners -0.01 -0.31
Republican (C) (-1.10) (-1.10)
Average Tenure of Commissioners 0.07 0.21
(C) (0.96) (0.96)
Rate of Return Retail Rate 0.67 0.67
Regulation (B) (0.20) (0.20)
1.15 1.15 *
Governor Republican (B)1.
(1.89) (1.89)
Percent of State Legislature -1.63 -0.23
Republican (C) (-0.74) (-0.74)
Percent of PUC Republican -0.01 -0.37
Interacted with Governor Republican (-0.81) (-0.81)
0.32 0.32
AT&T Arbitration (B)3
(0.30) (0.30)
Period Prior to Decision on Long- -2.08 ** -2.08 **
Distance Application (B) (-2.27) (-2.27)
Voluntary Reduction by Incumbent -2.77 ** -2.77 **
(B) (-2.19) (-2.19)
UNE Entry (lagged 1 year, divided by 4.35 ** 4.35 **
state standard deviation) (C) 2 (2.42) (2.42)
Average Retail Rate (lagged 1 year) 0.05 0.24
(C) (0.81) (0.81)
Economic effects for continuous explanatory variables are based on a one standard
deviation increase in that variable, while economic effects for binary explanatory variables
are based on a change in the variable from zero to one.
2 This variable is already scaled by dividing by the standard deviation, so the economic
effect is based on a one-unit increase.
Notes (B) binary explanatory variable, (C) continuous explanatory variable,
t-statistics are reported in parentheses.
*** statistically significant at 99% confidence level
** statistically significant at 95% confidence level
statistically significant at 90% confidence level