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on Information and Communication Technologies |
| By: | He, Zhiguo (U of Chicago); Jiang, Sheila (U of Florida); Xu, Douglas (U of Florida); Yin, Xiao (U College London) |
| Abstract: | Banks' lending technology hinges on their handling of soft and hard information in dealing with different types of credit demand. Through assembling a novel dataset on banks' investment in information technologies (IT), this paper provides concrete empirical evidence on how banks adapt their lending technologies. We find invest ment in communication IT is associated with improving banks' ability to produce and transmit soft information, while investment in software IT helps enhance banks' hard information processing capacity. We exploit policies that affect geographic regions differentially to show causally that banks respond to an increased demand for small business credit (mortgage refinance) by increasing their spending on communication (software) IT spending. We also find that the entry of fintech induces commercial banks to increase their investment in IT--more so in the software IT category. |
| JEL: | G21 G51 O12 O32 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4132&r=ict |
| By: | Gaurab Aryal; Charles Murry; Pallavi Pal; Arnab Palit |
| Abstract: | We evaluate the effects of bundling demand for broadband internet by K-12 schools. In 2014, New Jersey switched from decentralized procurements to a new procurement system that bundled schools into four regional groups. Using an event study approach, we find that, on average, prices for participants decreased by one-third, and broadband speed purchased increased sixfold. We bound the change in school expenditures due to the program and find that participants saved at least as much as their total "E-rate" subsidy from the federal government. Under weak assumptions on demand, we show that participating schools experienced large welfare gains. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.07277&r=ict |
| By: | Bunel, Simon; Bijnens, Gert; Botelho, Vasco; Falck, Elisabeth; Labhard, Vincent; Lamo, Ana; Röhe, Oke; Schroth, Joachim; Sellner, Richard; Strobel, Johannes; Anghel, Brindusa |
| Abstract: | The productivity-enhancing effects of digitalisation have generated increased interest in the promotion of digital technologies. This report provides different estimations for euro area countries of the impact of digital uptake on productivity at firm level, showing that the adoption of digital technologies could lead to an increase in firms’ productivity in the medium term. However, not all firms and sectors experience significant productivity gains from digital adoption, and not all digital technologies deliver significant productivity gains. The report highlights possible factors behind the low productivity benefits of digitalisation in euro area countries. For example, a lack of strong institutions and governance structures may help to explain why digital diffusion is slower than expected, why it is slower in some countries than others and why the expected productivity benefits from digitalisation have not been fully achieved by now. Furthermore, the report suggests that the full benefits of the digital revolution will be reaped by properly supplying skills to firms and also by investing in computerised information in low-productivity firms. JEL Classification: D24, E24, E22, J24, O33, O38, C67 |
| Keywords: | complementary investments, digitalisation, human capital, institutions, productivity |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2024339&r=ict |
| By: | He, Zhiguo (Stanford U); Jiang, Sheila (U of Florida); Xu, Douglas (U of Florida) |
| Abstract: | This paper develops a general equilibrium model to examine the role of information technology when intermediaries facilitate the origination and distribution of assets given information asymmetry. Information technology measures the informativeness of asset-quality signals received by intermediaries, who purchase assets produced by originators and then resell them to uninformed investors. Allowing intermediaries to operate has a mixed social welfare effect: Uninformed intermediation can be welfare reducing when adverse selection is severe in the economy, while informed intermediation always improves social welfare. |
| JEL: | D52 D82 G21 G23 O33 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4145&r=ict |
| By: | Julia M. Puaschunder (Columbia University, USA) |
| Abstract: | This article discusses the role of digitalization for diplomacy. In a currently-unfolding new type of evolution of lawmaking through digital media, digitalization has become a central component of the online creation of law. Classical traditional means of diplomacy have changed in light of social online media and digital content. This article introduces the role of online communication as a new diplomacy gateway that cuts traditional red tape. Digital diplomacy being more transparent than previous forms of traditional diplomacy, has made international affairs more visible to multiple stakeholders instantaneously. In this feature, digital diplomacy appears to be more openly accessible to everyone to witness and more likely to be influenced by multiple streams, also on a truly global stage. At the same time, digital diplomacy brings along crowd influences and manipulation threats. Given the diminishing role of traditional media and nation-states’ shrinking control over online information exchange as well as censorship, digital diplomacy can become a contested terrain of multiple rather uncontrollable forces at play concurrently. Clear downsides are the strategic manipulation of democratic processes possible in digitalized media. Internet vulnerabilities as well as digital inequality in terms of access to online information and technology skills are additional areas of improvement for digital diplomacy. The paper closes with a future prospect of the law and economics of digital diplomacy and a call for the need to address human rights online. |
| Keywords: | Censorship, Comparative Law, Democracy, Digitalization, Digital diplomacy, Diplomacy, Economics, Global governance, Human rights, International affairs, Internet, Leadership, Political E-marketing, Public Administration, Public Policy, Social Online Media |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0274&r=ict |
| By: | K. Ravirajan (Research Scholar (Corresponding Author), Madras School of Economics, Gandhi Mandapam Road, Chennai-600 025 (India)); K. R. Shanmugam (Director and Professor, Madras School of Economics, Gandhi Mandapam Road, Chennai) |
| Abstract: | While the global financial crisis had a cascading effect on all economies and financial sectors of countries, the Indian economy and its finances, particularly its banking system, due to its stringent regulatory and prudent policies. However, in the post crisis period, the scenario changed in the Indian banking because of the mounting pile of bad loans. The main purpose of the study is to estimate the bank specific efficiency utilizing the technical efficiency effect model in the stochastic frontier approach for panel data during the post global financial crisis period, 2009-2018 and find out the factors causing variations in efficiency of Indian banks. Results indicate that despite the consolidation of information technology efforts, the efficiency of the Indian banking industry deteriorated during the post global financial crisis period. This may be due to the mounting pile of non-performing assets. Interestingly, the public banks seem to be more efficient than their private counterparts. The results also indicate that banks with larger capital adequacy ratio or older banks or banks with more branches are less inefficient in generating interest income. |
| Keywords: | stochastic frontier, technical efficiency effect, panel data, Indian banks, financial crisis |
| JEL: | D24 G21 G34 G28 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2023-254&r=ict |
| By: | Joshua Aslett; Gustavo González; Stuart Hamilton; Miguel Pecho |
| Abstract: | This technical note introduces analytics for compliance risk management in tax administration. Together with its accompanying toolkit, the note is intended as a starter kit to support capacity development in compliance planning, risk, and intelligence groups. Developed primarily for emerging analysts new to tax administration, the note presents both theory and practical aspects of analytics. Its toolkit is comprised of an initial collection of analytics templates designed to assist in turning the theory presented into practice in the areas of: (1) compliance planning; (2) taxpayer profiling; and (3) audit case selection. |
| Keywords: | tax administration; compliance risk management; compliance strategy; risk analysis; intelligence; data; analytics; digitalization; information technology; analytics support compliance risk management; support CRM analytics capability; CRM theory; IMF Library; data quality; Tax administration core functions; Machine learning; Value-added tax |
| Date: | 2024–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imftnm:2024/001&r=ict |