Regulatory federalism and industrial policy in broadband telecommunications
We 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.
If 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.
References listed on IDEAS
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.:
- David P. Baron, 1985. "Noncooperative Regulation of a Nonlocalized Externality," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 553-568, Winter.
- 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, June.
- Laffont, Jean-Jacques & Pouyet, Jérôme, 2000.
"The Subsidiarity Bias in Regulation,"
IDEI Working Papers
96, Institut d'Économie Industrielle (IDEI), Toulouse.
- 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.
- 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.
- Antonio Estache & Frannie Humplick, 1995.
"Does decentralization improve infrastructure performance?,"
ULB Institutional Repository
2013/44079, ULB -- Universite Libre de Bruxelles.
- Antonio Estache & Sarbajit Sinha, 1995. "Does decentralization improve infrastructure performance?," ULB Institutional Repository 2013/44078, ULB -- Universite Libre de Bruxelles.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- 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.
- 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.
- Cécile Aubert & Jean-Jacques Laffont & Pablo Serra & Diego Bondorevsky & Diego Petrecolla & Alfredo García & Paulina Beato & David Wood & Richard Tomiak & Jaime Millán & Carmen Fuente & Salomé Cisnal , 2002. "Competition Policy in Regulated Industries: Approaches for Emerging Economies," IDB Publications (Books), Inter-American Development Bank, number 42038 edited by Paulina Beato & Jean-Jacques Laffont.
- 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.
- 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.
- 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.
- Martimort, David, 1996. "The multiprincipal nature of government," European Economic Review, Elsevier, vol. 40(3-5), pages 673-685, April.
- Oecd, 2010. "Geographically Segmented Regulation for Telecommunications," OECD Digital Economy Papers 173, OECD Publishing.
- 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.
- 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.
- 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.
- Estache, A., 1995.
"Decentralizing Infrastructure. Advantages and Limitations,"
World Bank - Discussion Papers
290, World Bank.
- Antonio Estache, 1995. "Decentralizing Infrastructure: Advantages and Limitations," ULB Institutional Repository 2013/44118, ULB -- Universite Libre de Bruxelles.
- 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.
- 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.
- Richard A. Posner, 1971. "Taxation by Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 22-50, Spring.
- repec:idb:brikps:42038 is not listed on IDEAS
- Juan José Ganuza & María Fernanda Viecens, 2010. "Deployment of High-speed Broadband Infrastructures during the Economic Crisis. The case of Regional Governments in Spain," Economic Reports 15-2010, FEDEA.
- 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.
- Francesc Trillas, 2008. "Regulatory federalism in network industries," Working Papers 2008/8, Institut d'Economia de Barcelona (IEB).
- 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.
- Robert P. Inman, 2008. "Federalism's Values and the Value of Federalism," NBER Working Papers 13735, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:eee:iepoli:v:25:y:2013:i:1:p:18-31. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.