nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2011‒03‒26
two papers chosen by
Walter Frisch
University Vienna

  1. The Telecommunications Industry and Economic Growth: How the Market Structure Matters By Vahagn Jerbashian
  2. Keeping it Together: Tracking Firms on New Zealand’s Longitudinal Business Database By Richard Fabling

  1. By: Vahagn Jerbashian
    Abstract: This paper presents an endogenous growth model where, in line with the recent em- pirical evidence, the telecommunications industry (telecom) is an engine of growth. In such a framework, this paper analyzes the channels through which telecom con- tributes to economic growth and focuses on market structure analysis for telecom, in the light of the recent changes in it. This paper suggests how the market struc- ture of telecom and the competition type in the telecom market can matter for its contribution to economic growth. It also proposes the optimal market structure for telecom from the social welfare perspective. In addition, it suggests the direction of telecom policies which can improve social welfare, and uses its theoretical results for qualitative evaluation of the Telecommunications Act of 1996 and similar policies.
    Keywords: telecommunication industry; market structure; economic growth; policy evaluation
    JEL: O41 O25 O38 L10
    Date: 2011–01
  2. By: Richard Fabling (Reserve Bank of New Zealand)
    Abstract: Having good longitudinal identifiers is important in empirical microeconomics, since researchers often need to be able to observe the same unit over time to make causal inferences. However, firm identifiers in Statistics New Zealand’s Longitudinal Business Database can be “broken” by, among other things, changes in the legal status of the firm. This paper proposes a simple method for repairing broken firm identifiers, making use of existing plant migration data. We show that making such repairs materially reduces the apparent rate of business entry and exit, and allows real economic phenomena, such as small business incorporation, to be observed for the first time.
    Keywords: firm identifiers; entry and exit; plant transfers
    JEL: D20
    Date: 2011–03

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