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on Information and Communication Technologies |
| By: | Alexander Bick; Adam Blandin; David Deming |
| Abstract: | Generative Artificial Intelligence (AI) is a potentially important new technology, but its impact on the economy depends on the speed and intensity of adoption. This paper reports results from the first nationally representative U.S. survey of generative AI adoption at work and at home. In August 2024, 39 percent of the U.S. population age 18-64 used generative AI. More than 24 percent of workers used it at least once in the week prior to being surveyed, and nearly one in nine used it every workday. Historical data on usage and mass-market product launches suggest that U.S. adoption of generative AI has been faster than adoption of the personal computer and the internet. Generative AI is a general purpose technology, in the sense that it is used in a wide range of occupations and job tasks at work and at home. |
| Keywords: | generative artificial intelligence (AI); technology adoption; employment |
| JEL: | J24 O33 |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:98805 |
| By: | Pápai, Zoltán; McLean, Aliz; Bukur, Tamás |
| Abstract: | This study examines the changes in consumer prices within the fixed broadband market in Hungary between 2020 and 2023, a period marked by unprecedented, government-backed market consolidation. Leveraging a hedonic price regression methodology, we inspect price changes in the context of internet service provider (ISP) differences, inflation, and various service features offered in broadband plans. The hedonic method allows for quality-adjusted price tracking over time, in addition to offering insights into the intrinsic value placed on various plan characteristics by consumers. We demonstrate that the hedonic methodology holds significant value for regulators and market players in developing effective price monitoring systems. Our analysis reveals that following the market consolidation, the previously stagnant price level increased, and the pricing strategies of the three major service providers underwent notable transformations. The two providers involved in the consolidation significantly raised their prices, with Vodafone becoming the most expensive provider in the country and Digi nearly losing its price advantage. By the end of the period, the third player, Telekom, offered more favourable hedonic prices compared to 2020. The cumulative increase in the average hedonic price index over the examined period was almost 20%, remaining significantly below the change in the consumer price index. The estimated intrinsic prices of the various fixed broadband plan characteristics are consistent with previous literature. The study underlines the utility of the hedonic methodology in providing nuanced insights into ISP pricing behaviour and fixed retail telecom market dynamics. The study opens up potential areas for future research, such as extending the analysis to television and voice telephony and monitoring future trends in light of the recent changes in market structure. |
| Keywords: | hedonic regression, telecommunications, fixed broadband, pricing, Hungary |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302499 |
| By: | James M. Brand; Mert Demirer; Connor Finucane; Avner A. Kreps |
| Abstract: | Computing technologies have become critical inputs to production in the modern firm. However, there is little large-scale evidence on how efficiently firms use these technologies. In this paper, we study firm productivity and learning in cloud computing by leveraging CPU utilization data from over one billion virtual machines used by nearly 100, 000 firms. We find large and persistent heterogeneity in compute productivity both across and within firms, similar to canonical results in the literature. More productive firms respond better to demand fluctuations, show higher attentiveness to resource utilization, and use a wider variety of specialized machines. Notably, productivity is dynamic as firms learn to be more productive over time. New cloud adopters improve their productivity by 33% in their first year and reach the productivity level of experienced firms within four years. In our counterfactual calculations, we estimate that raising all firms to the 80th percentile of productivity would reduce aggregate electricity usage by 17%. |
| JEL: | D24 L86 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32938 |
| By: | Kim, Jung Ho; Lee, Dayoung; Hwang, Junseok; Lee, Junmin |
| Abstract: | In the relentless pursuit of urban prosperity and sustainability, cities worldwide are undergoing transformative changes, spurred by the Fourth Industrial Revolution and digital transformation(DX). At the forefront of this evolution are Smart Cities, which leverage cutting-edge information and communication technologies (ICT) to enhance public services and improve the overall quality of life for their inhabitants. These technologically advanced cities utilize data-driven decision-making to optimize various sectors, from mobility to governance, promising a new era of urban living. However, technologies that enable smart cities to develop, also risk deepening the digital divide. ICT infrastructure is a crucial element to smart cities' development, but it often overlooks the disparities in digital access and skills among different demographic groups. Preliminary research predominantly focuses on the technological and industrial components necessary for developing smart cities but falls short in addressing the social dimension, particularly the digital divide. This study aims to bridge this gap by exploring the digital divide within the context of Korean smart cities. The research conducts an empirical analysis of whole South Korean 229 cities and analyzes the impact of ICT infrastructure provision, knowledge-intensive industry specialization, and local governance capability alleviating or exacerbating digital divide. |
| Keywords: | Smart City, Digital Divide, ICT Infrastructure, Knowledge-Intensive Indusrtry, Governance Capability, Spatial Autocorrelation |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302514 |
| By: | Manaka, Kyoko; Kikuchi, Hinata; Nakamura, Akihiro |
| Abstract: | Efforts to promote the widespread adoption of electric vehicles (EVs), which contribute to the realization of a carbon-neutral society, are being discussed. According to the Japan Automobile Dealers Association, the share of EVs in new passenger car sales was approximately 1.16% in the period ending December 2024, with a total share of about 1.85%. Past surveys related to Battery Electric Vehicles (BEVs)indicate that factors such as driving range and vehicle specifications, as well as the availability of charging facilities, are key to their widespread adoption (Pysalska et al., 2022; Phillipsen et al., 2020; Khan et al., 2017; Kudoh and Motose, 2010). There are different types of EV charging facilities, such as regular recharging facilities which take several hours to charge for a 100 km drive and fast charging facilities which take about 30 minutes to charge for a 100 km drive. The installation cost of the former is relatively low, and it can be installed in individual homes using subsidies. In contrast, the installation cost of the latter ranges from 10 to 20 million yen, making it impractical for individual homes and used by the public in a manner similar to current gasoline stations. Additionally, there are Super-fast charging facilities called Superchargers, dedicated to Tesla vehicles, which allow significantly faster charging than fast charging facilities. Currently, fast charging facilities are mainly installed in locations such as automobile dealerships, convenience stores, roadside stations, and expressways (SA/PA), with 40% of installations at automobile dealerships, while only 10% are at convenience stores and roadside stations/highways (Source: March 2023, e-mobility power charging spot list). On the other hand, regular recharging facilities are installed mainly in destinations with long stay times such as hotels and shopping malls, in addition to individual home installations. The necessity for adequate recharging facilities is evident as BEV usage can only become widespread if users have convenient access to recharging options. In Japan, over 29, 000 recharging facilities exist, with approximately 70% being regular recharging facilities and 30% being fast recharging facilities. It is relatively easy to install in detached houses but challenging in apartment buildings. According to the "Housing and Land Statistics Survey" by the Statistics Bureau of Japan in 2018, 53.6% of households live in detached houses, and 43.5% live in apartment buildings, with the percentage of apartment dwellers reaching 71% in Tokyo. This higher ratio in urban areas presents a challenge to the widespread installation of charging facilities. While installing regular recharging facilities in individual homes is relatively easy, in apartment-type residences, it is necessary to obtain approval from the residents' association, which is organized by the inhabitants, to install charging facilities in communal parking areas. these households face significant constraints in installing personal recharging stations in their parking spaces. This is one reason why apartment dwellers hesitate to purchase BEVs. Charging facilities remain idle when not in use and are suitable for shared use. In fact, public fast recharging facilities are used as shared infrastructure. While regular recharging facilities are generally installed in individual homes and are not typically considered for shared use, the advancement of ICT and the widespread ownership of smartphones suggest that shared use of regular recharging facilities in individual homes would be quite feasible. Previous studies highlight the critical role of ICT in optimizing various services and systems, including transportation. For instance, Benevolo et al. (2016) and Jittrapirom et al. (2017) emphasize how ICT can enhance smart mobility and user-centered mobility services. Breidbach and Brodie (2017) discuss the sharing economy's reliance on ICT for facilitating value co-creation and engagement. Billhardt et al. (2019) demonstrate how ICT improves the matching efficiency of cab dispatch services. These studies would indicate that ICT may contribute the matching efficiency of recharging facilities online. In Japan, currently, it is possible to search for recharging facilities online, but there are not many facilities that can be reserved via apps. If recharging facilities become more widely available, and if it becomes possible to check their real-time availability and make reservations using a smartphone app, this is likely to increase the willingness to purchase EVs. Especially in Japanese urban areas with a high ratio of apartment dwellers, the efficient use of infrastructure, including regular recharging facilities, is essential for high EV adoption rates. Based on this awareness, this study aims to explore the impact of enhanced availability of charging facilities, such as through sharing and online reservations, on the intention to purchase BEVs in urban areas of Japan with high apartment dwelling ratios. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302467 |
| By: | Howell, Bronwyn; Potgieter, Petrus H. |
| Abstract: | The services that run on telecommunications providers' infrastructure have evolved from essential to the day-to-day functioning to hyper critical to the minute-by-minute functioning of modern society. Telecommunications firms have however been increasingly exposed to competition and diminishing profitability. In order to face this challenge, it is essential to understand the micro-economic realities of the interaction between content providers and connectivity access providers. In this paper, we unravel options and discuss the insights revealed by micro-economic modeling of the interaction between a retailer of online content and a broadband provider. We show that heterogeneity among consumers leads to heterogeneous outcomes for the firms even where average trends are clear. One of the main results is that the absence of commercial cooperation between the content and the broadband provider delivers bad outcomes in almost all cases. The economic theory underlying the analysis is consumer willingness-to-pay and the resulting economic surplus (often, Marshallian surplus) comprising of the consumer surplus and the producer surplus. It is assumed that the content product increases the cost of delivery of the broadband product due to increased network use. The parameters that are variable are (a) the correlation between consumer valuations of the two products and (b) the additional cost of broadband provision for users of the content product. The paper presents the results of extensive simulation models for different distributions of consumer valuations and incremental additional cost for content product users. Our discrete modelling approach differs from the more common approach of assuming a continuum of consumers (i.e. not only infinitely many but uncountably infinitely many!) and solving for an optimal expected outcome. Our first step is to solve the problem for a finite number of customers and a single allocation valuations (drawn from a specified distribution). This allows one to see what might happen in concrete cases. We then do this many times and compute averages which approximates the expected outcome in the continuum case, of course. This approach allows us to identify more detail than an expected outcome does. We would like to remind the reader than the expected outcome from the roll of a die is 31 2 which is never an actual outcome. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302480 |
| By: | Garcia-Murillo, Martha; MacInnes, Ian |
| Abstract: | The rapid evolution of information technologies has led to a society with worldwide connectivity, efficiency, and convenience. Yet these technological innovations are not free of perils, as they can also negatively impact our economic, political, and social well-being. This paper analyzes the tradeoffs between technological progress and its potential harms, particularly in the United States. Recognizing the historical benefits of digital technologies while also being mindful of their negative consequences, we highlight the complex market dynamics, political influences, and societal forces that determine whether policymakers can pass legislation and regulatory measures to mitigate the potential harm caused by disruptive innovations. The research question driving this paper is: How do market dynamics, political influences, and societal forces interact to shape the prospects of introducing effective legislation and regulatory measures for digital technologies in the United States? In the absence of legal frameworks, what alternative entities are there to mitigate a technology's negative impacts? The research methodology entailed a comprehensive analysis of the scholarly literature and a review of secondary sources related to digital technologies. Synthesizing insights from academic works, reports, and studies, this paper analyzes the multifaceted forces influencing the introduction of legislation and regulatory frameworks for digital technologies in the United States. |
| Keywords: | Digital regulation, social media, digital markets, algorithms, artificial intelligence |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302468 |