Regulatory federalism and industrial policy in broadband telecommunications
AbstractWe analyse the impact of regulation, industrial policy and jurisdictional allocation on broadband deployment using a theoretical model and an empirical estimation. Although central powers may be more focused and internalize inter-jurisdictional externalities, decentralized powers may internalize local horizontal policy spillovers and use a diversity of objectives as a commitment device in the presence of sunk investments. The latter may, for instance, alleviate the collective action problem of the joint use of rights of way and other physical infrastructures. In the empirical exercise, using data for OECD and EU countries for the period 1999–2006, we examine whether centralization promotes new telecommunications markets, in particular the broadband access market. The existing literature, in the main, claims it does, but we find no support for this claim in our data. Our results show that indicators of national industrial policy are a weakly positive determinant of broadband deployment and that different measures of centralization are either irrelevant or have a negative impact on broadband penetration.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Information Economics and Policy.
Volume (Year): 25 (2013)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505549
Regulation; Industrial policy; Decentralization; Telecommunications; Broadband investment;
Other versions of this item:
- Daniel Montolio & Francesc Trillas, 2011. "Regulatory federalism and industrial policy in broadband telecommunications," Working Papers 2011/15, Institut d'Economia de Barcelona (IEB).
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hahn, Robert W. & Layne-Farrar, Anne & Passell, Peter, 2003. "Federalism and Regulation: An Overview," Working paper 249, Regulation2point0.
- Jeanne-Mey Sun & Jacques Pelkmans, 1995. "Why Liberalisation Needs Centralisation: Subsidiarity and EU Telecoms," The World Economy, Wiley Blackwell, vol. 18(5), pages 635-664, 09.
- Wallsten, Scott, 2006. "Broadband and Unbundling Regulations in OECD Countries," Working paper 314, Regulation2point0.
- Yossef Spiegel & Daniel F. Spulber, 1994. "The Capital Structure of a Regulated Firm," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 424-440, Autumn.
- Avinash Dixit, 2002. "# Incentives and Organizations in the Public Sector: An Interpretative Review," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 696-727.
- Laffont, Jean-Jacques & Pouyet, Jérôme, 2000.
"The Subsidiarity Bias in Regulation,"
IDEI Working Papers
96, Institut d'Économie Industrielle (IDEI), Toulouse.
- Antonio Estache & Sarbajit Sinha, 1995.
"Does decentralization improve infrastructure performance?,"
ULB Institutional Repository
2013/44078, ULB -- Universite Libre de Bruxelles.
- Antonio Estache & Frannie Humplick, 1995. "Does decentralization improve infrastructure performance?," ULB Institutional Repository 2013/44079, ULB -- Universite Libre de Bruxelles.
- Oecd, 2010. "Geographically Segmented Regulation for Telecommunications," OECD Digital Economy Papers 173, OECD Publishing.
- Francesc Trillas, 2008. "Regulatory federalism in network industries," Working Papers 2008/8, Institut d'Economia de Barcelona (IEB).
- Richard A. Posner, 1971. "Taxation by Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 22-50, Spring.
- Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," Journal of Law, Economics and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
- David P. Baron, 1985. "Noncooperative Regulation of a Nonlocalized Externality," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 553-568, Winter.
- Scarpa, Carlo, 1994. "Regulation as a Bargaining Process: Negotiation over Price and Cost-Reducing Investments," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 357-65, July.
- Easterbrook, Frank H, 1983. "Antitrust and the Economics of Federalism," Journal of Law and Economics, University of Chicago Press, vol. 26(1), pages 23-50, April.
- Caillaud, B. & Jullien, B. & Picard, P., 1996. "National vs European incentive policies: Bargaining, information and coordination," European Economic Review, Elsevier, vol. 40(1), pages 91-111, January.
- Walter Distaso & Paolo Lupi & Fabio M. Manenti, 2005.
"Platform Competition and Broadband Uptake: Theory and Empirical Evidence from the European Union,"
- Distaso, Walter & Lupi, Paolo & Manenti, Fabio M., 2006. "Platform competition and broadband uptake: Theory and empirical evidence from the European union," Information Economics and Policy, Elsevier, vol. 18(1), pages 87-106, March.
- Martimort, David, 1996. "The multiprincipal nature of government," European Economic Review, Elsevier, vol. 40(3-5), pages 673-685, April.
- Lorenz Blume & Stefan Voigt, 2008.
"Federalism and Decentralization – A Critical Survey of Frequently Used Indicators,"
MAGKS Papers on Economics
200821, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Lorenz Blume & Stefan Voigt, 2011. "Federalism and decentralization—a critical survey of frequently used indicators," Constitutional Political Economy, Springer, vol. 22(3), pages 238-264, September.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009.
"Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues,"
TSE Working Papers
09-072, Toulouse School of Economics (TSE).
- Jullien Bruno & Pouyet Jerome & Sand-Zantman Wilfried, 2010. "Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues," Review of Network Economics, De Gruyter, vol. 9(4), pages 1-22, December.
- Jullien, Bruno & Pouyet, Jérôme & Sand-Zantman, Wilfried, 2009. "Public and Private Investments in Regulated Network Industries: Coordination and Competition Issues," IDEI Working Papers 562, Institut d'Économie Industrielle (IDEI), Toulouse.
- Antonio Estache, 1995.
"Decentralizing Infrastructure: Advantages and Limitations,"
ULB Institutional Repository
2013/44118, ULB -- Universite Libre de Bruxelles.
- Estache, A., 1995. "Decentralizing Infrastructure. Advantages and Limitations," World Bank - Discussion Papers 290, World Bank.
- Casey B. Mulligan & Andrei Shleifer, 2005. "The Extent of the Market and the Supply of Regulation," The Quarterly Journal of Economics, MIT Press, vol. 120(4), pages 1445-1473, November.
- Nonnenmacher, Tomas, 2001. "State Promotion And Regulation Of The Telegraph Industry, 1845 1860," The Journal of Economic History, Cambridge University Press, vol. 61(01), pages 19-36, March.
- Robert P. Inman, 2008. "Federalism's Values and the Value of Federalism," NBER Working Papers 13735, National Bureau of Economic Research, Inc.
- Neufeld, John L., 2008. "Corruption, Quasi-Rents, and the Regulation of Electric Utilities," The Journal of Economic History, Cambridge University Press, vol. 68(04), pages 1059-1097, December.
- Pranab Bardhan & Dilip Mookherjee, 2006. "Decentralisation and Accountability in Infrastructure Delivery in Developing Countries," Economic Journal, Royal Economic Society, vol. 116(508), pages 101-127, 01.
- Ades, Alberto & Di Tella, Rafael, 1997. "National Champions and Corruption: Some Unpleasant Interventionist Arithmetic," Economic Journal, Royal Economic Society, vol. 107(443), pages 1023-42, July.
- Jonathan E. Nuechterlein & Philip J. Weiser, 2007. "Digital Crossroads: American Telecommunications Policy in the Internet Age," MIT Press Books, The MIT Press, edition 1, volume 1, number 026264066x, January.
- Andreas Kappeler & Albert Solé-Ollé & Andreas Stephan & Timo Välilä, 2012.
"Does Fiscal Decentralisation Foster Regional Investment in Productive Infrastructure?,"
Discussion Papers of DIW Berlin
1204, DIW Berlin, German Institute for Economic Research.
- Kappeler, Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2013. "Does fiscal decentralization foster regional investment in productive infrastructure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 15-25.
- Andreas Kappeler & Albert SolÃ©-OllÃ© & Andreas Stephan & Timo VÃ¤lilÃ¤, 2012. "Does fiscal decentralization foster regional investment in productive infrastructure?," ERSA conference papers ersa12p60, European Regional Science Association.
- Andreas Kappeler & Albert Solé-Ollé & Andreas Stephan & Timo Välilä, 2012. "Does fiscal decentralization foster regional investment in productive infrastructure?," Working Papers 2012/32, Institut d'Economia de Barcelona (IEB).
- Kappeler , Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2012. "Does fiscal decentralization foster regional investment in productive infrastructure?," Working Paper Series in Economics and Institutions of Innovation 273, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Rajabiun, Reza & Middleton, Catherine, 2013. "Regulation, investment and efficiency in the transition to next generation networks: Evidence from the European Union," 24th European Regional ITS Conference, Florence 2013 88536, International Telecommunications Society (ITS).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.