nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2018‒01‒01
five papers chosen by
Walter Frisch
Universität Wien

  1. G20 action on the digital economy: Addressing market failures to improve the health of the digital infrastructure By Twomey, Paul
  2. Digital Challenges for the Welfare State By Eichhorst, Werner; Rinne, Ulf
  3. Broadband Internet and Income Inequality By Georges Vivien Houngbonon; Julienne Liang
  4. Forecasting Tourist Arrivals in Prague: Google Econometrics By Zeynalov, Ayaz
  5. Information aggregation with continuum of types By Bozbay, Irem; Peters, Hans

  1. By: Twomey, Paul
    Abstract: Market failures are resulting in network operators and device manufacturers not being incentivized to ensure improved cyber security practices in their operations. The result is a large global base of vulnerable computers, modems/routers and Internet of Things devices which can be manipulated by Cyber criminals. Practical recommendations are made as to how governments could address these market failures (with low-cost to government) and significantly improve the health of the cyber ecosystem.
    Keywords: market failures,Internet of Things,internet service providers,cyber security
    JEL: L1 L2
    Date: 2017
  2. By: Eichhorst, Werner (IZA); Rinne, Ulf (IZA)
    Abstract: Digitalization is the buzzword under which profound changes of the labor market can be summarized. Next to automation, i.e., the increasing use of robots, "intelligent" machines and more comprehensive algorithms that is no longer restricted to routine tasks, especially the emerging platform economy may pose significant "digital challenges" for the welfare state. This article sheds light on the potentially eroding foundations of the welfare state, it discusses tools for combating a potential digital divide on the individual level, and it proposes a new institutional perspective on firms, workers, and the welfare state.
    Keywords: digitalization, robots, automation, future of work, industry 4.0, technological change, platform economy, welfare state
    JEL: J08 J24 O33 O38
    Date: 2017–11
  3. By: Georges Vivien Houngbonon (LGI - Laboratoire de Genie Industriel - CentraleSupélec); Julienne Liang (France Télécom)
    Abstract: Policy makers are aiming for a large coverage of high-speed broadband Internet. However , there is still a lack of evidence about its effects on income distribution. In this paper, we investigate the effects of fixed broadband Internet on mean income and income inequality using a unique town-level data on broadband adoption and quality in France. We find that broadband adoption and quality raise mean income and lower income inequality. These results are robust to initial conditions, and yield policy implications for the deployment of faster broadband Internet.
    Keywords: Broadband Internet,Income Inequality,Telecommunications
    Date: 2017–12–01
  4. By: Zeynalov, Ayaz
    Abstract: It is expected that what people are searching for today is predictive of what they have done recently or will do in the near future. This study analyzes the reliability of Google search data in predicting tourist arrivals and overnight stays in Prague. Three differ- ently weighted weekly Mixed-data sampling (MIDAS) models, ARIMA(1,1,1) with Monthly Google Trends information and model without informative Google Trends variable have been evaluated. The main objective was to assess whether Google Trends information is useful for forecasting tourist arrivals and overnight stays in Prague, as well as whether higher fre- quency data (weekly data) outperform same frequency data methods. The results of the study indicate an undeniable potential that Google Trends offers more accurate forecast- ing, particularly for tourism. The forecasting of the indicators using weekly MIDAS-Beta for tourist arrivals and weekly MIDAS-Almon models for overnight stays outperformed monthly Google Trends using ARIMA and models without Google Trends. The results confirm that predications based on Google searches are advantageous for policy makers and business operating in the tourism sector.
    Keywords: Google trends, Mixed-data sampling, forecasting, tourism
    JEL: C53 E17 L83
    Date: 2017–12–01
  5. By: Bozbay, Irem (university of surrey); Peters, Hans (QE / Mathematical economics and game the)
    Abstract: We consider an information aggregation problem where a group of voters wants to make a `yes' or `no' decision over a single issue. Voters have state-dependent common preferences, but hold possibly conflicting private information about the state in the form of types (signals). We assume that types are distributed from a state-dependent continuous distribution. In this model, Bayesian equilibrium voting and efficient voting coincide, and informative voting means that a voter votes in favor of the issue if and only if the signal exceeds a cut-point level. Our main result is an answer, in the form of a condition on the parameters of the model, to the question when informative voting is efficient.
    Keywords: private information, efficient information aggregation, strategic voting
    JEL: C70 D70 D71 D80 D82
    Date: 2017–12–12

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