Table A-3 Tests of Instrument Relevance
One-Year Lag Two-Year Lag
Endogenous Regressor / Equation Specification Specification
Lagged Dependent Variable
160.23 133.20
Levels Equation 10.3 1.20
(0.000) (0.000)
2449.49 1814.71
First Differences Equation (.
(0.000) (0.000)
Form of Retail Rate Regulation
25.16 23.39
Levels Equation 25.16 2.
(0.000) (0.000)
6.71 6.37
First Differences Equation 6.71 6.37
(0.568) (0.606)
Level of CLEC UNE Entry
57.24 56.65
Levels Equation 57.24 56.65
(0.000) (0.000)
67.13 62.85
First Differences Equation 67.13 62.85
(0.000) (0.000)
Notes Chi-square test statistics are reported with p-values in parentheses.
Chi-square test statistics are from joint-significance tests of the instruments in the
first-stage regression.