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on Information and Communication Technologies |
| By: | Dirk Bergemann (Cowles Foundation, Yale University); Alessandro Bonatti (MIT) |
| Abstract: | Large internet platforms collect data from individual users in almost every interaction on the internet. Whenever an individual browses a news website, searches for a medical term or for a travel recommendation, or simply checks the weather forecast on an app, that individual generates data. A central feature of the data collected from the individuals is its social aspect. Namely, the data captured from an individual user is not only informative about this speci?c individual, but also about users in some metric similar to the individual. Thus, the individual data is really social data. The social nature of the data generates an informational externality that we investigate in this note. |
| Keywords: | Individual Data, Social Data, Informational Externality, Internet Platforms, Data Collection, Data Markup |
| JEL: | D80 D82 D83 |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2171r&r=all |
| By: | Philippe Aghion (College de France); Antonin Bergeaud (Banque de France); Huiyu Li (Federal Reserve Bank of San Francisco); Peter Klenow (Stanford University); Timo Boppart (IIES, Stockholm University) |
| Abstract: | Growth has fallen in the U.S., while firm concentration and profits have risen. Labor's share has fallen, mostly due to rising market share of low labor share firms. We propose a theory for these trends in which the driving force is falling firm-level costs of spanning multiple markets, perhaps due to ICT advances. The most efficient firms spread into new markets in response, generating a temporary burst of growth but also erecting barriers to future innovation if their efficiency is difficult for other firms to imitate. Despite rising rents, even the efficient firms do less innovation in the long run as they are more likely to face stiff competition if they enter markets against each other. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:458&r=all |
| By: | Banerjee, Abhijit (MIT); Duflo, Esther (MIT); Imbert, Clement (University of Warwick); Mathew, Santhosh (Bill and Melida Gates Foundation); Pande, Rohini (Harvard University) |
| Abstract: | Can e-governance reforms improve government policy? By making information available on a realtime basis, information technologies may reduce the theft of public funds. We analyze a large eld experiment and the nationwide scale-up of a reform to India's workfare program. Advance payments were replaced by "just-in-time" payments, triggered by e-invoicing, making it easier to detect misreporting. Leakages went down: program expenditures dropped by 24%, while employment slightly increased; there were fewer fake households in the ocial database; program ocials' personal wealth fell by 10%. However, payment delays increased. The nationwide scale-up resulted in a persistent 19% reduction in program expenditure. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1224&r=all |
| By: | Ibrahim D. Raheem (EXCAS, Liège, Belgium); Aviral K. Tiwari (Rajagiri Business School, Kochi, India); Daniel Balsalobre-lorente (Ciudad Real, Spain) |
| Abstract: | This study explores the role of the information and communication Technology (ICT) and financial development (FD) on both carbon emissions and economic growth for the G7 countries for the period 1990-2014. Using PMG, we found that ICT has a long run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both variables are found to impact negatively on economic growth. However, their interactions show they have mixed effects on economic growth (i.e., positive in the short-run and negative in the long-run). Policy implications were designed based on these results. |
| Keywords: | ICT; Financial development; Carbon emissions; Economic growth and G7 countries |
| JEL: | E23 F21 F30 O16 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/058&r=all |
| By: | Paul John, Pena |
| Abstract: | Advancements in information and communications technologies have changed the way individuals, firms, and nations create and exchange value across borders. Value comes in the form of goods, services, information, and data, but may also include talent, capital, ideas, and even culture. Southeast Asia is a thriving digital economy with the prospect of becoming a US$200B economy by 2025. However, new forms of protectionist measures arise, which may impede the free flow of value within the region. An aspirational digital single market concept and the changing dynamics of digital trade are explored. A digital economic integration framework that is interoperable, inclusive, and agile is proposed to address both barriers to the creation of an ASEAN digital single market. Requisite conditions for policy solutions are identified, and an empowered digital transformation board with the task of leading the change agenda is proposed as a critical governance enabler across the region. |
| Keywords: | ASEAN, digitalization, digital trade, digital transformation, regional integration, single market |
| JEL: | F15 L81 O33 |
| Date: | 2019–08–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95948&r=all |
| By: | Agostino Valier; Ezio Micelli |
| Abstract: | This research reviews the existing literature on the use of digital innovation in real estate valuation, focusing on three aspects.First, it analyses the factors that make the use of digital innovation increasingly relevant in the real estate sector and, more specifically, in the evaluation phase of assets. The need for innovation in the real estate market is highlighted, as the demand from investors for fast, reliable and objective appraisals.The second part reports the literature on digital innovations applied to valuation models, distinguishing between forecasting models for future market trends and assets-specific automated valuation models. This section focuses on the impact that new models have on the currently used approaches for value assessment.Third, the use of digital-based valuation models is investigated by analysing the context conditions. The review analyses the literature that correlates the reliability of the new models and the conditions of the real estate market in which they are used, especially in terms of information efficiency. Finally, the conclusions summarise the limits and potential of digital innovation in the field of valuation. Future directions are then identified. |
| Keywords: | Automated Valuation Models; Big data; Digital innovation; Forecasting analysis; proptech |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_320&r=all |
| By: | Daniel Piazolo |
| Abstract: | Through a combination of various sources about employment data, insights about the probability of the risk of automation of real estate jobs within Germany can be derived. Sources are: 1.) BerufeNET data base of the German federal employment agency (Bundesagentur für Arbeit), 2.) JobFutoromat database with the estimation of automation probabilities of across-the-board occupations, 3.) Lists with the number of employees subject to social insurance on an occupation group level. Consequently, a weighted average of the automation probability of jobs within each occupational group and within the overall real estate sector of Germany can be derived. Thus the negative side of digitalization will be quantified (i.e. the job killer aspect). Since Germany is the largest economy within the European Union, some of the insights can be transferred to the European level. The paper also discusses, that the novel possibilities through the use of digital tools like artificial intelligence will create new employment possibilities within the various real estate areas. The challenges are addressed how to localize and to quantify the specific positive effect of digitalization (i.e. the job engine). |
| Keywords: | Automation; Digital Transformation; Disruption; Emplyoment; Structural Change |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_181&r=all |
| By: | beg, Sabrin |
| Abstract: | I test the land and labor market effects of a property rights reform that computerized rural land records, and provided access to digitized records and automated transactions to agricultural landowners and cultivators in Pakistan. Using the staggered roll-out of the program, I find that while the reforms do not shift land ownership, landowning households are more likely to rent out land and lower their agricultural participation. At the same time, cultivating households have access to more land, as rented in land and overall farm size per cultivating household increases. Improved tenure security also shifts the type of rental contracts, and the input choices of cultivators. Aggregate district level data suggests an improvement in overall crop yield. These results have implications for both the allocation of land across farmers and the selection of labor into farming. |
| Keywords: | Property Rights, Rural Mobility, Agricultural Land Markets, ICT in Development, Institutions |
| JEL: | O1 O10 O12 O13 |
| Date: | 2019–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:96110&r=all |
| By: | Jan Drahokoupil (European Trade Union Institute, Brussels, Belgium); Brian Fabo (Narodna banka Slovenska, Bratislava, Slovakia) |
| Abstract: | This paper addresses demand for skilled labour in Slovakia, a country that is characterized by a high degree of economic integration through inward foreign investment and through international backward linkages within global value chains. Developing existing approaches to political economy and global production networks (GPNs), our framework distinguishes between demand for digital skills on two levels: occupational structure; and skill content within occupational types. In this way, we can assess not only what kind of workers are hired by companies, but also what kind of specific skills are required from these workers. Using a large dataset on vacancies from a leading job portal, combined with administrative data on company size and ownership, we show that foreign and mixed-ownership companies generally advertise for higher skilled occupations than domestic firms, but their skill requirements for these jobs are lower than in similar jobs in domestic companies. Foreign companies have higher skill requirements only in some blue-collar jobs linked to assembly and component manufacturing. For white collar occupations, domestic companies are more likely to require digital skills. The findings confirm our expectations about the position of Slovakia as a country in an integrated periphery, where multinational companies are heavily present but rarely bring complex activities. Our key policy implication is that foreign direct investment in the integrated periphery brings only a limited potential for technology transfers. |
| Keywords: | skills, foreign direct investment, FDI, digitalization, global production networks, job vacancies |
| JEL: | J24 O33 |
| URL: | http://d.repec.org/n?u=RePEc:svk:wpaper:1064&r=all |
| By: | Tony ShunTe Yuo; Yu-An Yang |
| Abstract: | Sharing economy is so popular nowadays, it is regarded as a new way to generate evolutionary or even revolutionary business models. Owing to the rapid development of verifying, measuring and storing technologies, such as ICT, IoT, GPS, clouds, 5G and block chains, sharing economies have shown its potential in almost all fields: bikes, cars, rooms, logistics, energies, even finance and investments. Explicitly, these technologies seemed to be the solutions of resource indivisibility and free-rider effects, therefore sharing become applicable. Nevertheless, this research believes that sharing is not merely the problem of identifying and delineated the rights and obligations between sharing users. In other words, not all resources are suitable for sharing, especially the stakeholders of the subjects were multiple parties. This research focuses on the concerns of Airbnb-liked room-sharing platforms, collecting opinions from users, providers and the managerial authorities. The results show that sharing is indeed not all about benefits, but comes with all sorts of concerns, ranging from planning issues, devaluing the property value, privacy concerns, to personal safety worries. Another matter is the slow legislation process cannot cope with the rapidly evolving operational patterns in sharing economies. The managerial authorities even could not identify the essence of the problem in sharing to determine the legality of the business. This research suggests that regulating these sharing goods should go back to the fundamental characteristics and not all traditional or old fashion system should be contempt. |
| Keywords: | Free rider effect; Neighborhood externalities; Sharing Economy; Smart City; Tragedy of the Commons |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_113&r=all |
| By: | Danial Lashkari (Boston College); Arthur Bauer (ENSAE-CREST); Jocelyn Boussard (Banque de France) |
| Abstract: | This paper investigates the role of IT in shaping recent trends in market concentration, factor income shares, and market competition. Relying on a novel dataset on hardware and software investments in the universe of French firms, we document a robust within-industry correlation between firm size and the intensity of IT demand. To explain this fact, we argue that the relative marginal product of IT inputs may rise with firm scale, since IT specifically helps firms deal with organizational limits to scale. We propose a general equilibrium model of industry dynamics that features firm-level production functions compatible with this mechanism. We estimate the production function and find evidence for the nonhomotheticity of IT demand and for an elasticity of substitution between IT and other inputs that falls below unity. Under the estimated model parameters, the cross-sectional predictions of the model match the observed relationship of firm size with IT intensity (positive) and labor share (negative). In addition, as a response to the fall in the relative price of IT inputs in post-1990 France, the model can explain about half of both the observed rise in market concentration and the observed market reallocations toward low-labor-share firms. |
| Keywords: | Information Technology, Labor Share, Industry Concentration, Production Function Estimation, Nonhomotheticity, Firm Heterogeneity |
| JEL: | O3 O4 E2 |
| Date: | 2019–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:984&r=all |
| By: | Proeger, Till; Runst, Petrik |
| Abstract: | The Knowledge Spillover Theory of Entrepreneurship (KSTE) considers determinants of knowledge diffusion as well as their impact on entrepreneurial activities and growth. Extending the KSTE, the role of incumbent firms for the broad diffusion of new knowledge has been emphasized. For those firms, the barriers to an effective flow of information are considered using the concepts of knowledge filters and absorptive capacities. Both concepts enable the derivation of institutional measures to penetrate knowledge filters and systematically increase absorptive capacities. We interpret the process of digitization as a central process of knowledge spillover in recent years and determine digitization-related knowledge filters for particular domains of firm decision-making. Using a consultant-based in-depth evaluation of 200 SMEs conducted in the context of a federal innovation program, structural drivers, firm clusters and domain-specific knowledge filters for digitization are determined. We find little evidence for structural drivers of knowledge spillover effectiveness. However, as firms are clustered according to their digitization pattern, we show that firms realize high degrees of digitization in most domains or in none, leading us to argue that domain-specific knowledge filters are weak. Rather, knowledge spillover in digitization can be considered a process with initially strong general knowledge filter and - once this filter has been penetrated - weaker subsequent domain-specific knowledge filters. Policy and managerial implications for increasing digitization-related knowledge spillovers in SMEs are discussed. |
| Keywords: | Digitization,Knowledge Filter,Knowledge Spillover Theory of Entrepreneurship,Small and Medium Enterprises |
| JEL: | D21 D82 H41 K23 L14 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:202019&r=all |