nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2017‒12‒11
ten papers chosen by
Walter Frisch
Universität Wien

  1. The Role of Openness in the Effect of ICT on Governance By Simplice Asongu; Jacinta Nwachukwu
  2. Financialization and industrial policies in Japan and Korea: Evolving institutional complementarities and loss of state capabilities By Sébastien Lechevalier; Pauline Debanes; Wonkyu Shin
  3. The Value of Online Scarcity Signals By Courty, Pascal; Ozel, Sinan
  4. Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach By Fabio Pieri; Michela Vecchi; Francesco Venturini
  5. Central Bank Digital Currency: Motivations and Implications By Walter Engert; Ben Fung
  6. Readiness of electronic health record systems to contribute to national health information and research By Jillian Oderkirk
  7. BIG data - BIG gains? Empirical evidence on the link between big data analytics and innovation By Niebel, Thomas; Rasel, Fabienne; Viete, Steffen
  8. Techno-Globalisierung, Leitmärkte und Strukturwandel in wirtschaftspolitischer Sicht By Paul J.J. Welfens
  9. Self-Scanning and Self-Control: A Field Experiment on Real-Time Feedback and Shopping Behavior By N. Montinari; E. Runnemark; E. Wengström
  10. The internet effects on sex crime and murder: Evidence from the broadband internet expansion in Germany By Nolte, André

  1. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta Nwachukwu (Coventry University, UK)
    Abstract: The study investigates how openness influences information and communication technology (ICT) penetration for improved government quality in sub-Saharan Africa for the period 2000-2012. Openness is measured in terms of trade and financial globalisation whereas ICT is proxied with mobile phone and internet penetration rates. Ten bundled and unbundled governance indicators are used. The empirical evidence is based on Generalised Method of Moments with forward orthogonal deviations. The main findings are: First, financial openness has an edge over trade openness when combined with ICT to affect both economic and institutional governance. Second, mobile phones have an edge over internet penetration in complementing (i) trade openness for economic governance and (ii) financial openness for institutional governance. Third, net effects on political governance are consistently negative. Taken together, in the short-run, openness-driven ICT policies are more rewarding in terms of economic and institutional governance than political governance. Fourth, catch-up in governance is facilitated by the interaction between openness and ICT. Contributions of these findings to literature are discussed.
    Keywords: Openness; ICT; Governance; Africa
    JEL: F40 O38 O40 O55 P37
    Date: 2017–01
  2. By: Sébastien Lechevalier; Pauline Debanes; Wonkyu Shin
    Abstract: The purpose of this article is to analyze the revival of industrial policies from the late 2000s in Japan and Korea and their limitations. Our approach has two major characteristics. First, we adopt the perspective of historical institutionalism to focus on the relation between IPs and financial systems and study their evolution over the last 40 years. Second, by mobilizing the concepts of institutional complementarities and hierarchy, we discuss the limits of this revival in a context of liberalized financial systems, to which government entities in charge of industrial policies have contributed. Our major result is that, in the context of financialization, past complementarities of the developmental state have weakened and contradictions have arisen. It resulted in a restructuration of state capabilities to design and implement industrial policies, and to its inability to subordinate finance to its goals, despite the discourses and ambitions of governments. However, and this is our second result, comparison between Japan and Korea also allows us to identify some significant differences in the initial institutional arrangements and in the process of institutional change, which are analyzed as sources of greater state capabilities in Korea than in Japan in the current period.
    Keywords: Institutional complementarities, institutional hierarchy, developmental state, state capabilities; financialization
    JEL: P11 P16 P51
    Date: 2017
  3. By: Courty, Pascal; Ozel, Sinan
    Abstract: Online retailers use scarcity cues to increase sales. Many fear that these pressure tactics are meant to manipulate behavioral biases by creating a sense of urgency. At the same time, scarcity cues could also convey valuable information. We measure the value of the scarcity messages posted by Expedia to a Bayesian rational consumer. A signal reveals information on the number of seats available at the posted price. Consumers can use this information to optimally time when they purchase a ticket. The maximum increase in expected utility for a naive consumer, who does not use publicly available information, is 8 percent. For a sophisticated consumer, the increase is between 4-7 percent. Scarcity signals have a negligible impact on seller revenue and consumption.
    Keywords: Airline Ticket.; Online Recommendations; Persuasion; price discrimination; Scarcity
    JEL: L1
    Date: 2017–12
  4. By: Fabio Pieri; Michela Vecchi; Francesco Venturini
    Abstract: This study explores the channels through which technological investments affect productivity performance of industrialized economies. Using a Stochastic Frontier Model (SFM) we estimate the productivity effects of R&D and ICT for a large sample of OECD industries between 1973 and 2007, identifying four channels of transmission: input accumulation, technological change, technical efficiency and spillovers. Our results show that ICT has been particularly effective in reducing production inefficiency and in generating inter-industry spillovers, while R&D has raised the rate of technical change and favoured knowledge spillovers within sectors. We also quantify the contribution of technological investments to output and TFP growth documenting that R&D and ICT accounted for almost 95% of TFP growth in the OECD area.
    Keywords: Research & Development, Information and Communication Technology, Productivity, Stochastic frontier models
    JEL: O14 O32 O47
    Date: 2017
  5. By: Walter Engert; Ben Fung
    Abstract: The emergence of digital currencies such as Bitcoin and the underlying blockchain and distribution ledger technology have attracted significant attention. These developments have raised the possibility of considerable impacts on the financial system and perhaps the wider economy. This paper addresses the question of whether a central bank should issue digital currency that could be used by the general public. It begins by discussing the possible motivations for a central bank to issue a digital currency. The paper then sets out a benchmark central bank digital currency (CBDC) with features that are similar to cash. The implications of such a digital currency are explored, focusing on central bank seigniorage, monetary policy, the banking system and financial stability, and payments. Finally, a CBDC that differs from the benchmark digital currency in a significant way is considered.
    Keywords: Bank notes, Digital Currencies, Financial services, Payment clearing and settlement systems
    JEL: E E4 E41 E42 E5
    Date: 2017
  6. By: Jillian Oderkirk (OECD)
    Abstract: All countries are investing in the development of electronic health (clinical) records, but only some countries are moving forward the possibility of data extraction for research, statistics and other uses that serve the public interest. This study reports on the development and use of data from electronic health records in twenty-eight countries. It reports on the prevalence of technical and operational factors that support countries in the development of health information and research programmes from data held within electronic health record systems, such as data coverage, interoperability and standardisation. It examines data quality challenges and how some countries are addressing them and it explores the governance of electronic health record systems and data, including examples of national statistical and research uses of data. The report provides an overall assessment of the readiness of countries to further develop health information from data within electronic health record systems and describes the outlook for the future. Ten countries are identified as having high readiness that enables them to develop world-class health information systems supporting health system quality, efficiency and performance and creates a firm foundation for scientific research and discovery.
    JEL: I1 O3 O5
    Date: 2017–12–04
  7. By: Niebel, Thomas; Rasel, Fabienne; Viete, Steffen
    Abstract: This paper analyzes the relationship between firms' use of big data analytics and their innovative performance in terms of product innovations. Since big data technologies provide new data information practices, they create novel decision-making possibilities, which are widely believed to support firms' innovation process. Applying German firm-level data within a knowledge production function framework we find suggestive evidence that big data analytics is a relevant determinant for the likelihood of a firm becoming a product innovator as well as for the market success of product innovations. These results hold for the manufacturing as well as for the service sector but are contingent on firms' investment in IT-specific skills. Subsequent analyses suggest that firms in the manufacturing and service sector rely on different data sources and data-related firm practices in order to reap the benefits of big data. Overall, the results support the view that big data analytics have the potential to enable innovation.
    Keywords: big data,data-driven decision-making,product innovation,firm-level data
    JEL: D22 L20 O33
    Date: 2017
  8. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: Die Globalisierung der Wirtschaftsbeziehungen – inklusive hat in Verbindung mit der Digitalisierung der Wirtschaft neuen Anpassungsdruck erzeugt. Mit der zunehmenden grenzüberschreitenden Entwicklung von Forschungsaktivitäten von multinationalen Unternehmen und der grenzüberschreitenden Kooperation forschender Firmen – der Technoglobalisierung – hat die Globalisierung der Wirtschaft eine zusätzliche Dimension entwickelt. Chinas ökonomischer Aufstieg sorgt dabei für globale Mehrnachfrage, aber auch eine verschärfte internationale Innovationskonkurrenz und zumindest zeitweise wurde u.a. von daher auch der Anreiz zu internationaler F&E-Kooperation gerade in OECD-Ländern gestärkt. Die Internationalisierung gibt einer internationalen Auswahl von Leitmärkten für Produktinnovationen neue Optionen und zugleich stellt sich die Frage, wie die Politik auf die veränderte Dynamik reagieren soll. Am Beispiel Österreichs sieht man mit Blick auf die Technoglobalisierung, dass auch kleine Länder durch gezielte Innovationsinternationalisierung via mehr Direktinvestitionen technologisch und ökonomisch aufholen können – ein möglicher Ansatzpunkt für eine neue Wachstumspolitik etwa der ostdeutschen Länder, aber auch von osteuropäischen EU-Beitrittsländern bietet sich an. Für Deutschlands westliche Bundesländer wäre eine stärkere Weltmarktorientierung und Fokussierung der Innovationsförderung wichtig, insbesondere in NRW. Eine Schwäche Deutschlands ist das Zurückhängen beim digitalen Breitbandausbau. Österreichs Probleme in der EU-Passivhaus-Vermarktung zeigen exemplarisch ökologisch-industriepolitische Defizite im EU-Binnenmarkt bzw. bei der EU-Leitmarktpolitik und der EU2020-Agenda. Innovationsorientierte Beschaffungsprogramme in EU-Ländern sind bislang wenig untersucht, dürften allerdings am ehesten in Verbindung mit Cluster-Initiativen erfolgversprechend sein. Technoglobalisierung erscheint als ein anhaltender Prozess, in den Deutschlands Wirtschaft eingebunden ist – mit besonderen Chancen, wenn es gelingt, mehr Hochtechnologiefirmen aus dem Ausland anzuziehen.
    Keywords: Wirtschaftspolitik, Strukturwandel, Techno-Globalisierung, Leitmärkte, EU
    JEL: E60 L16 O33 O52
    Date: 2017–08
  9. By: N. Montinari; E. Runnemark; E. Wengström
    Abstract: Payment and checkout at retail stores is increasingly being replaced by automated systems. One recent technological invention in this area is mobile self-scanning in which customers carry a mobile scanner while shopping. Mobile self-scanners give real-time feedback on spending. The device increases price saliency and enables customers to keep track of the total amount spent. Using a field experiment, we test if mobile self-scanning affects shopping behavior. Consumers of two grocery stores were allocated randomly to use a mobile self-scanner or not. Overall, we find that using the self-scanner has a negative but insignificant effect on total amount spent. However, the response to using the scanner is heterogeneous and for customers with low self-control, it significantly reduces both their spending and number of items bought when using the mobile scanner. Moreover, we find that consumers with low self-control are more likely to use the self-scanner than individuals with high self-control. Taken together, our results suggest that sophisticated individuals, that is, individuals who are aware of their self-control problem, use the scanner to control their spending.
    JEL: D01 D12 M30
    Date: 2017–11
  10. By: Nolte, André
    Abstract: This paper studies the effects of the introduction of a new mass medium on criminal activity in Germany. The paper asks the question of whether highspeed internet leads to higher/lower sex crime offences and murder. I use unique German data on criminal offences and broadband internet measured at the municipality level to shed light on the question. In order to address endogeneity in broadband internet availability, I follow Falck et al. (2014) and exploit technical peculiarities at the regional level that determine the roll-out of high-speed internet. In contrast to findings for Norway (Bhuller et al., 2013), this paper documents a substitution effect of internet and child sex abuse and no effect on rape incidences. The effects on murder increase under the instrumental variable approach however remain insignificant. Overall, the estimated net effects might stem from indirect effects related to differences in reporting crime, a matching effect, and a direct effect of higher and more intensive exposure to extreme and violent media consumption. After investigating the potential channel, I do find some evidence in favor of a reporting effect suggesting that the direct consumption effect is even stronger. Further investigation of the development of illegal pornographic material suggests that the direct consumption channel does play a significant role in explaining the substitution effect.
    Keywords: Crime,Broadband Internet,Media
    JEL: K42 H40 L96 C26
    Date: 2017

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