nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2019‒10‒07
five papers chosen by
Marek Giebel
Universität Dortmund

  1. An Empirical Investigation on associated linkage between Human Development and ICT: A South Asian Perspective By Sunita, Dr; Jain, Megha; Nagpal, Aishwarya
  2. New Technology and Data in Real Estate By Marcelo Cajias
  3. Too Much Data: Prices and Inefficiencies in Data Markets By Daron Acemoglu; Ali Makhdoumi; Azarakhsh Malekian; Asuman Ozdaglar
  4. Using technology to speed up the research process By Stephen Ryan
  5. The Potential for innovation in mining value chains. Evidence from Latin America By Iizuka, Michiko; Pietrobelli, Carlo; Vargas, Fernando

  1. By: Sunita, Dr; Jain, Megha; Nagpal, Aishwarya
    Abstract: In the wake of industrial revolution in the late 18th and 19th centuries, technology as a seminal force has impacted everything and its effects are much more beyond the pertinent human comprehension. Most of the studies use per capita GDP as a measure to map the economic well-being of any nation but it is a narrower indicator. Human development could be considered to be the key that acts as a binding force to absorb the technological driven advancements. Taking this perspective, we contemplate the emergent prerequisite of finding the association between human capital development and information & communication technology (ICT) framework. The current study attempts to analyze how advancement in ICT could promote human capital development with special reference to South Asian Region (SAR) over the period 2000-16 by employing panel fixed effects modeling. Where, social human capital is proxied by the Human Development Index (HDI) and the the ICT penetration is measured by the parameters like technological readiness, mobile cellular subscriptions, and internet penetration. This is supplemented by other key macroeconomic control variables like population growth, urbanization sprawl, etc. in order to obtain an umbrella view. In order to have an in-depth understanding, individual component level linkages of HDI such as per capita GDP, birth life expectancy and school enrollment rate with ICT and other macroeconomic demographic indicators are also tested separately.The empirical analysis results hint towards the strong positive associations of internet penetration, technological readiness, and mobile usage with the human development index. The overall results are found to be in sync with the key findings. Therefore, the study recommends a cohesive ecosystem that could amalgamate technological space with HDI in the contemporary framework. The study further concludes with the key policy implications.
    Keywords: ICT, Human Development, Human Social Capital Development, Mobile, Internet, GDP, South Asia
    JEL: O11 O15 O19
    Date: 2019–09–25
  2. By: Marcelo Cajias
    Abstract: Initial yields are used by institutional investors and investment managers to assess the pricing conditions of real estate markets. In contrast to commercial real estate, initial yields in the residential sector are hard to quantify, especially due to the lack of comparables. In the era of digitalisation and big data residential assets are mostly brought to the market via digital multiple listing systems. The paper develops semiparametric hedonic models for extracting the implicit information to calculate residential net initial yields for both a buy-to-hold and rental investment strategy based on more than 3 million observations. The results are robust and confirm that the pricing conditions of residential markets are captured by the hedonic approach, enhancing the transparency in real estate markets.
    Keywords: Big data; buy or rent; German residential; Net initial yields; semiparametric regression
    JEL: R3
    Date: 2019–01–01
  3. By: Daron Acemoglu; Ali Makhdoumi; Azarakhsh Malekian; Asuman Ozdaglar
    Abstract: When a user shares her data with an online platform, she typically reveals relevant information about other users. We model a data market in the presence of this type of externality in a setup where one or multiple platforms estimate a user’s type with data they acquire from all users and (some) users value their privacy. We demonstrate that the data externalities depress the price of data because once a user’s information is leaked by others, she has less reason to protect her data and privacy. These depressed prices lead to excessive data sharing. We characterize conditions under which shutting down data markets improves (utilitarian) welfare. Competition between platforms does not redress the problem of excessively low price for data and too much data sharing, and may further reduce welfare. We propose a scheme based on mediated data-sharing that improves efficiency.
    JEL: D62 D83 L86
    Date: 2019–09
  4. By: Stephen Ryan
    Abstract: The initial phase of any research project is time-consuming. Identifying and then gathering the relevant authorities takes time, as does reading and digesting their contents. This is particularly true when the research topic has already been extensively covered.It is possible that some part of this initial phase can be done faster using technology. This does not require the most expensive and sophisticated software - there are some zero cost or low cost options available. In this paper, the author illustrates how natural language processing techniques and high-level programming languages can be combined with MS-Excel add ons and free online tools to greatly accelerate the real estate research process. The paper is easily accessible to those with no computer programming experience. It uses examples drawn from the real estate sector only.
    Keywords: Lemmas; Machine reading; N-grams; Natural Language Processing; Tags
    JEL: R3
    Date: 2019–01–01
  5. By: Iizuka, Michiko (National Graduate Institute for Policy Studies, Japan); Pietrobelli, Carlo (UNU-MERIT, and University Roma Tre); Vargas, Fernando (UNU-MERIT, and Inter†American Development Bank)
    Abstract: This paper tries to broaden the scope and understanding of innovation in the mining sector, with a focus on emerging countries based on the experience of Latin America. It discusses the innovation processes that are developing in the mining sector of emerging countries, and uses the global value chains (GVC) approach to analyze the potential available to local firms. The focus is on all forms of innovation, not only those eventually subject to patenting, to include innovations in products and processes, but also in business, marketing and organizational models and practices. The new features of scientific knowledge applied to the mining sector (e.g. ICT, new materials, biotechnology) open new opportunities for new suppliers to enter and add value in mining GVCs, and we illustrate this point with specific examples of Latin American suppliers. However, in developing this argument, we cannot forget that in most of Latin American mining there is insufficient supply of local knowledge, indicators of R&D expenditures and researchers involved show a significant lag with respect to advanced countries. Multinational mining companies have not traditionally conducted intensive R&D activities near their operations, and local universities do not tend to specialize in scientific topics directly linked to the mining industry. The paper concludes by arguing that there is a need to rethink and innovate policy approaches, if countries aim at scaling up and broadening the many good examples of innovative suppliers.
    Keywords: Global value chains, Natural resources, Mining, Latin America, Innovation and learning, public policies
    JEL: O13 O32 O43
    Date: 2019–09–20

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