Macroeconomic implications of virtual shopping : a theoretical approach

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Macroeconomic implications of virtual shopping : a theoretical approach

Author Info

Yetkiner, I. Hakan
Horvath, Csilla (Groningen University)

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Ibrahim Hakan Yetkiner

Abstract

Recently, parallel to developments in the communication technology, online shopping has become increasingly popular for many products, like books, CDs, software, and computers. Most analysts conjecture that the future will witness a wider basket of products and a higher trade volume via the Internet. This paper investigates the economic implications of Internet shopping in a Ricardian equilibrium framework. First, it shows the necessary and sufficient condition for the shift to Internet shopping. Next, it indicates that macroeconomic variables like consumption and income rise when this shift takes place. Thus, this paper shows that the economic implications of Internet shopping will be higher than the current experience and Internet shopping will become an important element of the `new economy\\\' when the bulky part of the shopping is done via the Internet.

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Paper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200004.

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Date of creation: 2000
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Handle: RePEc:dgr:rugccs:200004

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Canoy, Marcel & van der Ploeg, Frederick & van Ours, Jan C, 2005. "The Economics of Books," CEPR Discussion Papers 4892, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Marcel F. M. Canoy & Jan C. van Ours & Frederick van der Ploeg, 2005. "The Economics of Books," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
- Canoy, Marcel & Ours, Jan C. van & Ploeg, Frederick van der, 2005. "The economics of books," Discussion Paper 13, Tilburg University, Center for Economic Research. [Downloadable!]
- Canoy, Marcel & van Ours, Jan C. & van der Ploeg, Frederick, 2006. "The Economics of Books," Handbook of the Economics of Art and Culture, Elsevier. [Downloadable!] (restricted)

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This page was last updated on 2009-11-13.

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