nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2013‒10‒11
seven papers chosen by
Walter Frisch
University Vienna

  1. In Google We Trust? By Roberto Burguet; Ramon Caminal; Matthew Ellman
  2. Public sector e-innovations. E-government and its impact on corruption By Liliana Proskuryakova; Gulnara Abdrakhmanova; Hans Pitlik
  3. Digital Dark Matter and the Economic Contribution of Apache By Shane Greenstein; Frank Nagle
  4. ICTs diffusion trajectories and economic development – an empirical evidence for 46 developing countries By Ewa Lechman
  5. Growth drivers: ICT and inclusive innovations By Ashima Goyal
  7. Does the Internet make people happier? By Thierry Pénard; Nicolas Poussing; Raphaël Suire

  1. By: Roberto Burguet; Ramon Caminal; Matthew Ellman
    Abstract: In a micro-founded model, we derive novel incentives for a monopoly search engine to distort its organic and its sponsored results on searches for online content and offline products. Distorting organic results towards content publishers with less effective display advertising and/or distorting sponsored results towards higher margin merchants (by underweighting consumer relevance in search auctions) increase per capita revenues but lower participation. The interplay of these incentives determines search bias and welfare. We also characterize how the welfare consequences of integration into display advertising, as intermediary or publisher, depend on asymmetries, monopolization and targeting.
    Keywords: search engine bias, internet economics, vertical integration, two-sided markets, antitrust
    JEL: L13 L41 L82 L86
    Date: 2013–09
  2. By: Liliana Proskuryakova (Research Laboratory for Science and Technology Studies, National Research University “Higher School of Economics”); Gulnara Abdrakhmanova (Director Center for Statistics and Monitoring of Information Society, National Research University “Higher School of Economics”); Hans Pitlik (WIFO - Austrian Institute of Economic Research)
    Abstract: The paper aims at assessing indicators and individual elements of e-government of selected countries in 2009-2010, and the interrelation of e-government with corruption in the public sector. The authors explore possible causal and dependency relations of the established interlink between e-government and public sector corruption. Although it is universally acknowledged that corruption is an evil, there is much debate over which determinants of corruption are important. Using econometric analysis for sizeable country samples the authors verified the closeness of interrelation between e-government indicators and ICT Development Index indicators, such as online services quality and ICT usage, on one hand, and the level of perceived public sector corruption, on the other hand. The major research papers were analyzed, along with international rankings and databases of international organizations. Based on the analysis recommendations for overcoming international e-government measurement constraints are put forward, as well as suggestions for future studies of the topic
    Keywords: Public sector, innovation, e-government, ICT, corruption
    JEL: D73 H70 P17 O33 Z18
    Date: 2013
  3. By: Shane Greenstein; Frank Nagle
    Abstract: Researchers have long hypothesized that spillovers from government, university, and private company R&D contribute to economic growth, but these contributions may be difficult to measure when they take a non-pecuniary form. The growth of networking devices and the Internet in the 1990s and 2000s magnified these challenges, as illustrated by the deployment of the descendent of the NCSA HTTPd server, otherwise known as Apache. This study asks whether this experience could produce measurement issues in standard productivity analysis, specifically, omission and attribution issues, and, if so, whether the magnitude is large enough to matter. The study develops and analyzes a novel data set consisting of a 1% sample of all outward-facing web servers used in the United States. We find that use of Apache potentially accounts for a mismeasurement of somewhere between $2 billion and $12 billion, which equates to between1.3 percent and 8.7 percent of the stock of prepackaged software in private fixed investment in the United States. We argue that these findings point to a large potential undercounting of “digital dark matter” and related IT spillovers from university and federal funding.
    JEL: O3 O31 O47
    Date: 2013–10
  4. By: Ewa Lechman (Gdansk University of Technology, Gdansk, Poland)
    Abstract: In economic theory, technology is treated as crucial factor contributing significantly to economic development. In seminal works of Schumpeter [1934, 1947], Baumol [1986], Gerschenkron [1962] or Abramovitz [1986], the emphasis on the role of technological progress in process of economic development is put extensively. Along with the previous, there emerged theoretical and empirical works on technology diffusion (i.e. Rogers 1962, Geroski 2000), where the dynamics of the process is considered. Temporarily, the spread on new information and communication technologies (ICTs) is massive. The objectives of the study are twofold. Using panel data we analyze the diffusion trajectories of ICTs in developing countries, and we assess the dynamics of the process. Secondly, we hypothesize on existence quantitative links between ICTs adoption and economic development. The time framework is set for period 2000-2011. Statistical data are derived from World Telecommunication/ICT Indicators Database 2012, World Development Indicators 2013 and Human Development Report 2013.
    Keywords: ICTs, diffusion, economic development, developing countries, S-shaped curve
    JEL: O10 O33 O57
    Date: 2013–09
  5. By: Ashima Goyal (Indira Gandhi Institute of Development Research; Institute of Economic Growth)
    Abstract: The paper explores the contribution of innovations to Indian growth. Inclusive innovations aid catch-up and close productivity gaps. An analytical framework helps to characterize policies that contribute to such innovations. Recent telecommunication and mobile banking policies are assessed against these. While policy can directly encourage it, if innovation depends on market size above a threshold, policies that expand size can be more effective in inducing innovation. While policy successfully expanded mobile use, increasing revenue has recently taken precedence over expanding the market. Poor provision of the relevant infrastructure continues to exclude sections of the population and limit spillovers. Regulatory measures that limited market size were partly responsible for India's lack of success in mobile banking, compared to Pakistan.
    Keywords: Inclusive innovation, technology policy, telecom, mobile banking
    JEL: O31 O33 O38
    Date: 2013–09
  6. By: Ewa Lechman (Gdansk University of Technology, Gdansk, Poland)
    Abstract: Extraordinary spread of new information and communication (ICTs) technologies has been recognized worldwide. ICTs are broadly perceived as tools facilitating economic growth and development, especially in economically backward countries. They are relatively easy and cheap to adopt, require minimum skills for effective usage, bringing opportunities for disadvantaged societies. They enable education, knowledge dissemination and sharing, processing and storing all kinds of information. At a time, existence of extend causal relationships between technology diffusion and general economy performance is highly probable. The paper seeks for empirical evidence in existing quantitative links between process of information and communication technologies (ICTs) adoption and dynamics of economic growth and development in Latin American countries. Preliminary we consider ICTs diffusion patterns in Latin American countries, approximating the diffusion process by S-shaped curves and estimating essential parameters of the curves. Afterwards, adopting a bundle of statistical and econometrical tools we aim to detect: if there is any quantitative relationship between ICTs adoption dynamics and economic growth and development; and we wish to estimate to what extend ICTs contribute to economic growth and development. We hypothesize on existing statistically significant and strong links between the two issues. For the analytical purposes, we use panel data for Latin American economies, in the time framework 1990-2011. All necessary data are derived from World Telecommunication/ICT Indicators Database 2012 (16th edition) and World Development Indicators 2012.
    Keywords: technology, ICTs, economic development, economic growth, Latin America, cross-country study
    JEL: F43 O11 O33
    Date: 2013–09
  7. By: Thierry Pénard (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen Basse-Normandie); Nicolas Poussing (CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development); Raphaël Suire (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen Basse-Normandie)
    Abstract: Given the increasingly prominent role the Internet plays in people's daily life, understanding its influence on individual well-being is crucial. Internet use yields direct utility and economic returns that may increase life satisfaction. But the Internet might also have detrimental effects (e.g. addiction, social isolation). This paper aims to examine the impact of Internet use on individual well-being. Using Luxemburgish data extracted from the European Value Survey, we find evidence that non users are less satisfied in their life than Internet users. Moreover, the positive influence of Internet use is stronger for individuals who are young or not satisfied with their income. These findings suggest that public policies aiming to reduce the digital divide by reaching out to non-Internet users are socially desirable.
    Keywords: Internet; Happiness; Life satisfaction; Digital divide; Social capital
    Date: 2013

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