nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2018‒07‒23
eight papers chosen by
Walter Frisch
Universität Wien

  1. Decision Sciences, Economics, Finance, Business, Computing, and Big Data: Connections By Chia-Lin Chang; Michael McAleer; Wing-Keung Wong
  2. The Perceived Impact of Government Regulation in Reducing Online Privacy Concern By Bruno Skrinjaric; Jelena Budak; Edo Rajh
  3. The 2018 PREDICT Key Facts Report. An analysis of ICT R&D in the EU and beyond By Matilde Mas; Juan Fernandez de Guevara; Juan Carlos Robledo; Melisande Cardona; Montserrat Lopez-Cobo; Riccardo Righi; Sofia Samoili
  4. A Study of Success Factors of Principle and Practice in Information Technology Risk Management By Urairat Maneerattanasak; Nitaya Wongpinunwatana
  5. The Digital World: I - Bitcoin: from history to real live By Dominique Guégan
  6. ICT investment and economic growth in India: An industry perspective By K L Krishna; Abdul A Erumban; Bishwanath Goldar; Deb Kusum Das; Suresh Chand Aggarwal; Pilu Chandra Das
  7. La dinámica del internet móvil en Colombia, su regulación y la calidad del servicio By Juan Sebastián Sanabria
  8. Information design in multi-stage games By Miltiadis Makris; Ludovic Renou

  1. By: Chia-Lin Chang (Department of Applied Economics and Department of Finance National Chung Hsing University, Taiwan.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.); Wing-Keung Wong (Department of Finance, Fintech Center, and Big Data Research Center, Asia University, Taiwan and Department of Medical Research China Medical University Hospital And Department of Economics and Finance Hang Seng Management College, Hong Kong, China and Department of Economics, Lingnan University, Hong Kong, China.)
    Abstract: This paper provides a review of some connecting literature in Decision Sciences, Economics, Finance, Business, Computing, and Big Data. We then discuss some research that is related to the six cognate disciplines. Academics could develop theoretical models and subsequent econometric and statistical models to estimate the parameters in the associated models. Moreover, they could then conduct simulations to examine whether the estimators or statistics in the new theories on estimation and hypothesis have small size and high power. Thereafter, academics and practitioners could then apply their theories to analyze interesting problems and issues in the six disciplines and other cognate areas.
    Keywords: Decision sciences; Economics; Finance; Business; Computing; Big data; theoretical models; Econometric and statistical models; Applications.
    JEL: A10 G00 G31 O32
    Date: 2018–03
  2. By: Bruno Skrinjaric (The Institute of Economics, Zagreb); Jelena Budak (The Institute of Economics, Zagreb); Edo Rajh (The Institute of Economics, Zagreb)
    Abstract: This paper examines the impact of regulation as an antecedent of online privacy concern. The aim is to investigate if and how perceived effectiveness of government regulation affects internet users’ concern for their privacy in the online environment. Existing research shows that perceived effectiveness and enforcement of regulatory policies reduce online privacy concern; however, it does not explain what factors influence this relationship. This research fills the gap by analyzing different perceptions of the existing country legislation and government effort to protect online privacy in the context of socio-demographic characteristics of respondents, computer anxiety, individual desire to maintain control of personal information, as well as intensity and diversity of online activities. The empirical analysis is conducted on a large sample of internet users in Croatia. The dependent variable in the regression model is online privacy concern and the model is tested with OLS and ordered probit estimation. The results confirm that perceived effectiveness of government regulation reduces online privacy concern whereas computer anxiety has a major positive impact on online privacy concern. These findings might be useful for national policy-makers and for business strategies in the context of the GDPR regulation coming in force in 2018.
    Keywords: regulation, data protection, online privacy concern, Croatia
    JEL: D1 K2
    Date: 2018–06
  3. By: Matilde Mas (University of Valencia and Instituto Valenciano de Investigaciones Económicas (IVIE)); Juan Fernandez de Guevara (University of Valencia and Instituto Valenciano de Investigaciones Económicas (IVIE)); Juan Carlos Robledo (Instituto Valenciano de Investigaciones Económicas (IVIE)); Melisande Cardona (European Commission - JRC); Montserrat Lopez-Cobo (European Commission - JRC); Riccardo Righi (European Commission - JRC); Sofia Samoili (European Commission - JRC)
    Abstract: The 2018 PREDICT Key Facts Report provides a detailed analysis of the state of ICT R&D activities in the European Union. This is the eleventh edition of a series that is published annually. Like the previous editions, an online version is available at: The report covers the period between 1995 and 2015, providing a long-term analysis of the European Union (EU) ICT sector and its R&D, covering a whole cycle from the initial expansion years, to the double recession that began in early 2008, and the most recent evolution up to 2015. Whenever possible, the report includes nowcasted data for 2016 and 2017. The statistical information provided by the figures allows comparing the ICT sector with the total economy; the ICT manufacturing sector with the ICT services sector; each of the four ICT manufacturing, two ICT services, MC and RS sectors’ behaviour; the pace followed by each EU country; and the pattern of the EU in an international context, including the most relevant countries from the perspective of the role they play in the world economy today, especially from the ICT R&D perspective.
    Keywords: R&D, ICT, innovation, statistics, digital economy, ICT industry analysis, ICT R&D and innovation
    JEL: O30 O32 O52
    Date: 2018–06
  4. By: Urairat Maneerattanasak (Thammasat University); Nitaya Wongpinunwatana (Thammasat University)
    Abstract: The purpose of studying the success factors of principle and practice in Information Technology Risk Management (ITRM) is initiated from the proposition that appropriate ITRM principle and practice can mitigate IT risks and losses which is a result of security threats. The literature showed that various general principles and frameworks are widely published but the established principle cannot be put into the practice. Additionally, there is a research study regarding the difficulty to maintain independent in identifying, reviewing and reporting tasks of IT risk and internal audit functions. The methodology consisted of the review of general principles and frameworks? documents and the interview from case studies. The general principles and frameworks in this research collected from the question ?Which principles and frameworks are applied to ITRM in your organization??. The question was asked to people in IT risk and IT internal audit functions from banking organizations and other industries which advanced information technologies are critical to the organizations. The content from first five applied principles and frameworks from the survey are Basel, COBIT 5 framework, COSO Enterprise Risk Management, ISO 31000 and ISO/IEC 27005 were reviewed. In addition, the interviews were conducted to the people in both functions from banking organizations regarding the success factors of principle and practice in ITRM in their opinions without guiding from the interviewer. The findings from the review of documents are eleven success factors that are general principle and framework selection, principle establishment, process design, structure of risk team, team?s expertise, complex level of task, interdependent level, risk culture, communication in organization, training and risk management?s tools and techniques. Meanwhile, the in-depth interviews? results showed that nine success factors that are adoption of ITRM principle, appropriate Process from ITRM Principle, task, interaction, adaptability, outsourcing, management support, conflict management and culture transformation. In conclusion, the success factors from both resources were compared and discussed as triangulation.The practical contribution of the research is that the success factors can be used as a primary check for the appropriation of current principle and practice, the exploration an intrinsic problem in both principle and practice on ITRM or the development stage. For the theoretical contribution, the researcher recommends studying various success case studies applying the principle and practices from various industries and classified the patterns by organization types which the information technologies are significant to their operation.
    Keywords: Information Technology Risk Management; Principle and Practice; Success Factors
    JEL: M15
    Date: 2017–07
  5. By: Dominique Guégan (Université Paris1 Panthéon-Sorbonne, Centre d'Economie de la Sorbonne, LabEx ReFi and Ca' Foscari University of Venezia)
    Abstract: Bitcoin can be considered as a medium exchange restricted to online markets, but it is not a unit of account and a store of value, and thus cannot be considered as a money. Bitcoin value is very volatile and traded for different prices in different exchanges platforms, and thus can be used for arbitrage purpose. His behavior can be associated with a high volatile stock, and most transactions in Bitcoin are aimed to speculative instruments. The high volatility in Bitcoin and the occurrence of speculative bubble depend on positive sentiment and confidence about Bitcoin market: several variables may be considered as indicators (volume of transactions, number of transactions, number of Google research, wikipedia requests). The star of the crypto-currencies has attained the 19 716 dollars in December 2017 and decreased to 6 707 dollars March 29, 2018. In capitalization it is at this time the 30th mondial currency. We explain some limits and interests of the Bitcoin system and why the central bankers and regulators need to take some decision on its existence, and what could be the possible evolution of the Bitcoin Blockchain
    Keywords: Bitcoin; Blockchain
    JEL: C10 E4 E5
    Date: 2018–03
  6. By: K L Krishna (Centre for Development Economics, Delhi School of Economics); Abdul A Erumban (The Conference Board and University of Groningen); Bishwanath Goldar (Former Professor, Institute of Economic Growth, Delhi, India); Deb Kusum Das (Ramjas College, University of Delhi, India); Suresh Chand Aggarwal (Former Professor, Department of Business Economics, University of Delhi, South Campus, India); Pilu Chandra Das (Kidderpore College, University of Calcutta)
    Abstract: The role of information and communication technologies (ICT) in driving economic growth has been well established in the literature. By reducing communication and transaction costs, and improving the quality of capital, ICT helps firms improve their productivity and growth. Given her linguistic and engineering skills, India has been pioneering in ICT exports, in particular export of software services since the 1990s. However, there is hardly any attempt to understand how Indian industries have been taking advantage of the massive growth potential of ICT use in their production process, looking into the experiences of different industries. This has been primarily constrained by lack of adequate, disaggregated data on the ICT use by industries. While there are a few studies trying to understand the contribution of ICT to aggregate economic growth, almost no study has attempted to unearth the role of ICT at detailed industry level. This paper is a first attempt to construct ICT investment series for the registered or organized segment of manufacturing industries in India, and one of the first few attempts that have made so far to build such ICT series for the aggregate Indian economy. The study extends the capital asset database in India KLEMS to include ICT investment, i.e. investment in hardware, software and communication equipment, in respect of different manufacturing industries. The paper also provides preliminary estimates of the contribution of ICT capital to growth in aggregate economy and registered manufacturing sector.
    Keywords: India; economic growth; information technology; ICT; organized manufacturing; industry-wise investment, aggregate economy
    Date: 2018–03
  7. By: Juan Sebastián Sanabria
    Abstract: En la actualidad, las Tecnologías de la Información y la Comunicación (TIC) son esenciales para el desarrollo de los países y la calidad de vida de las personas; su uso es, cada vez, más masivo y la familiarización con estas crece constantemente. En este sentido, el objetivo principal de este documento es determinar la dinámica de los servicios de internet móvil en Colombia como parte fundamental de las TIC, su penetración, calidad y el costo del servicio respecto a los ingresos totales de los grupos familiares. Así también, se analizan las cifras de uso, cobertura y calidad del internet móvil; y se estudian las resoluciones de la Comisión de Regulación de las Comunicaciones (CRC) y su aplicabilidad con el fin de determinar cuáles prácticas permiten la mejora continua en la prestación, calidad, acceso, tecnología y tarifas para el consumidor.
    Keywords: tecnología, internet móvil, regulación económica, tecnologías de la Información
    JEL: L51 L86 O30
    Date: 2018–07–03
  8. By: Miltiadis Makris (Department of Economics, University of Southampton); Ludovic Renou (Queen Mary University of London)
    Abstract: We consider multi-stage games, where at each stage, players receive private signals about past and current states, past actions and past signals, and choose actions. We fully characterize the distributions over actions, states, and signals that obtain in any (sequential) communication equilibrium of any expansion of multi-stage games, i.e., when players can receive additional signals about past and current states, past actions, and past and current signals (including the additional past signals). We interpret our results as revelation principles for information design problems. We apply our characterization to bilateral bargaining problems.
    Keywords: multi-stage games, information design, communication equilibrium, sequential communication equilibrium, information structures, Bayes correlated equilibrium, revelation principle
    JEL: C73 D82
    Date: 2018–06–25

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