Policy, Federalism, and Regulating Broadband Internet Access

Following recent telecommunications mergers, local (mostly municipal and county) governments and the federal government are fighting over who should determine whether cable television systems must make their facilities available to unaffiliated providers of high-speed (“broadband”) Internet service. This intergovernmental dispute is only the latest in a series of such clashes regarding competition and communications policy. A brief review of the policy suggests that substantively, local open-access requirements are not yet warranted. However, the economics of federalism, primarily that the relevant markets are local, indicates that local governments should have the right to choose these policies, perhaps erroneously. Federal preemption could prevent learning from multiple independent local “experiments.” The best case for limiting local authority is if it is only the exploitation of opportunistic ability to extract nationwide rents in exchange for approving transfer of the incumbent’s cable franchise to an acquiring firm. Key Words: Federalism, Internet, regulation, vertical integration JEL Classification Numbers: H1, L5, L1 We find that the welfare change from increasing NHS output could easily be negative, particularly when extra spending is financed by distortionary taxes. In contrast, expanding private health care is always efficiency-improving in our simulations. In our central estimates, increasing private health care by a pound’s worth of output produces an efficiency gain of 55 pence, but increasing national health output produces a net efficiency loss of 32 pence per pound! One reason for these results is that increasing the output of rationed health care has ambiguous effects on the total deadweight losses from waiting costs, but these costs unambiguously fall when the private health sector expands. Financing policies by user fees avoids the efficiency costs of raising distortionary taxes, and it also produces efficiency gains by reducing waiting lists. In fact, increasing national health care output produces an overall efficiency gain in most of our simulations, rather than an efficiency loss, when the policy is financed by higher user fees rather than by distortionary taxes. Still, the policy is generally less efficient than a user fee–financed increase in private health care.

Rural Areas and the Internet

Presents findings from surveys conducted between 2000 and 2003. Looks at the growth of Internet distribution in rural communities, and the gap between rural and suburban or urban communities

Information Technology in New Zealand: Review of Emerging Social Trends, Current Issues, and Policies

This paper discusses the general state of information technology in New Zealand society, current issues, and policies. It is a qualitative study that reviews recent scholarly articles, periodicals, and surveys in order to create an understanding of some of the information technology issues and trends in New Zealand. After reviewing previous research, it assesses the potential existence and nature of a 'digital divide' in New Zealand society whilst also evaluating possible strategic responses to the issue. New Zealand society has rapidly accepted emerging online trends as well as achieving an overall high level of Internet provision nationally. Through government policy and education, this small island nation has remained at the forefront of information technology and can be considered somewhat of an e-democracy. However, despite these positives, there is a risk of low-income communities being left behind as New Zealand society becomes increasingly dependent on IT in the workplace and in governmental administration

Telecommunications: Collective Bargaining in an Era of Industry Reconsolidation

[Excerpt] In this paper, we examine the reconsolidation of the industry, between 1995 and 2001, focusing on the merger, acquisition, and business strategies of the major corporate players; union responses to those strategies; and the resulting evolution of union-management relations and collective bargaining outcomes. We argue that the nature of the industry and technology, coupled with its institutional legacy, provides incentives for consolidation and recentralization of the ownership structure. In this process over the last decade, former Bell affiliates have sought union support before regulatory commissions, and the unions have leveraged their political power to make important gains in collective bargaining and in organizing new members. As a result, the outcomes for union members and prospects for union institutional viability are more positive than they otherwise would have been

The limits of open acess as a regulatory yardstick in the regulation of utilities in Latin America

This paper contends that the identification of a pro-competitive agenda in the process of regulatory reform undertaken in many developing countries, particularly in the field of utilities regulation, ultimately rests on the vision held by the authority about the sources of market failures. Conventional Industrial Organization theory assumes that the exercise of market power by incumbent firms limits the access of potential competitive entrants, and therefore, government regulation should curb such power. However, the existence of market “power” is an inference from conventional “equilibrium” thinking on markets and competition, where such power is associated with the static conditions of markets, away from the efficient equilibrium epitomized by the Perfect Competition model. By logical inference, an alternative “market process” view that regards markets as entities subject to constant disequilibrium should lead to alternative normative conclusions. Under this alternative view, exploring the role of rules and institutions is essential for the analysis of “efficient” market outcomes. Such efficiency is related to the capacity of market participants to coordinate their productive activities, and complementary entrepreneurial synergies. This paper outlines an alternative network competition perspective, focused on the integration of complementary capabilities, as a regulatory yardstick. This view balances the rights of incumbent firms to exploit their rights, and the possibilities of third parties to integrate into the network concerned on a non-discriminatory basis, thereby preserving the investments of incumbents on a more equitable basis. It also explores the experience of selected Latin American countries in the development of this network competition approach.

Business model innovation: Creating value in times of change

We highlight business model innovation as a way for general managers and entrepreneurs to create and appropriate value, especially in times of economic change. Business model innovation, which involves designing a modified or new activity system, relies on recombining the existing resources of a firm and its partners, and it does not require significant investments in R&D. We offer managers and researchers a conceptual primer on business model innovation emphasizing the importance of system-level thinking.Business model; innovation; activity system; design; value creation;

2008 State New Economy Index: Benchmarking Economic Transformation in the States

Scores and ranks states' economic structures on their competitiveness in the New Economy, as measured by the prominence of knowledge jobs, globalization, economic dynamism, transformation to a digital economy, and capacity for technological innovation

Rebuilding the Post-Pandemic Economy

After suffering the worst economic shock since the Great Depression, the American economy is recovering in fits and starts. While many businesses are reopening their doors and thriving, continued uncertainty about the course of the virus, the inflation outlook, labor shortages, and many other factors are hampering a full return to normal activity. The COVID-19 pandemic reinforced and exacerbated many of the biggest structural economic challenges in our society. It precipitated the largest economic relief and stimulus spending in US history and transformed the way that millions of Americans live and work, with automation, e-commerce, and telework all playing a bigger role.The policy volume Rebuilding the Post Pandemic Economy examines important questions about how the post-pandemic economy will take shape. What are some initial lessons we can take away from the novel government programs that were deployed to provide economic relief and stimulus? How can we implement new infrastructure investments to maximize efficiency and equity, and best respond to the climate crisis? After a year of widespread school closures, what have we learned about the role of K-12 education in perpetuating or reducing social and economic inequities? And how should American trade policies evolve to promote economic recovery and strengthen America's role in the global economy

The 3G standard setting strategy and indigenous innovation policy in China is TD-SCDMA a flagship?

In the time of “network economy”, industries and the public have stressed several “battles for dominance” between two or more rival technologies, often involving well-known firms operating in highly visible industries. In this paper, we are going to focus on the Chinese self-developed standard TD-SCDMA to perceive the implication and target of the nation’s policy and strategy. The motivation of the research starts from the interesting fact we observed: TD-SCDMA is named as the Chinese made standard, however the Chinese hold core patent technology is still about 7%, while most of the rest part is still taken by other foreign companies. The “faultage” between the small share reality and a self made standard sweet dream implies a well plotted strategy. In order to understand it, we firstly raise the question of why the Chinese government postpones the 3G decision again and again. Then we go further to probe why the standard-setting of TD-SCDMA has aroused wide attention as a strategic tool to fulfill “indigenous innovation”, and finally becomes part of national science and technology policy to increase international competitiveness? We are going to use economics theories to understand the essence of the creation of TD-SCDMA, and its relation to China’s interests.3G, standard, innovation, China