Policy change needed to accelerate investment in structural transformation

a column by Laurence Boone and Debora Revoltella for VOX: CEPR’s Policy Portal

For the past two years, global growth outcomes and prospects have steadily deteriorated, while investment growth has collapsed. This is particularly the case in Europe.

This column argues that reducing policy uncertainty, rethinking fiscal policy, and acting vigorously to address the challenges raised by digitalisation, climate change, and persistent inequalities all have the potential to reverse the current slippery trend and lift investment and living standards.

Figure 4 Geographical distribution of 2018 R&D spending, by sector and among new global leading firms (%)

Source: EIB calculations based on EU Industrial R&D Investment Scoreboard.

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Unpacking e-commerce: The rise of new business models

a column by Molly Lesher and Jan Tscheke for VOX: CEPR’s Po;icy Portal

E-commerce facilitates trade across borders, increases convenience for consumers, and enables firms to reach new markets.

This column identifies a range of digital technologies and the new business models they enable that are driving dynamism in e-commerce markets. Despite this dynamism, however, important gaps remain with regard to e-commerce participation among firms and different groups of individuals.

Targeted polices are needed to provide the regulatory flexibility for new business models to thrive and to ensure that e-commerce becomes more inclusive.

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At risk of exclusion? Degrees of ICT access and literacy among senior citizens

an article by Tobias Olsson (Lund University,, Sweden), Ulli Samuelsson (Jönköping University, Sweden) and Dino Viscovi (Linnæus University, Växjö, Sweden) published in Information, Communication & Society Volume 22 Issue 1 (2019)

Abstract

Drawing on data derived from a nationwide postal survey (n = 1264) with a simple random sample of Swedes between ages 65 and 85 (response rate: 63%), the article analyses the general patterns of:

1. degrees of information and communication (ICT) access and
2. ICT-literacy among Swedish senior citizens.

The overall patterns of access and literacy are analysed in light of senior citizens’ assets – conceptualized as material, discursive and social resources – and their age and gender.

The analysis reveals a positive correlation between levels of material (e.g., income), discursive (e.g., English skills) and social (e.g., social networks) resources and access to ICT. With greater resources, the average number of devices increases. The analysis also reveals a positive correlation between discursive and social resources and ICT-literacy. Gender has no bearing on access to devices, but might have some effect on ICT-literacy.

The correlation between age, access and literacy is negative. With increasing age, both access and literacy decreases. In this respect, the study reveals a generational effect. However, since all three resources tend to decrease over the life cycle, the results are also discussed in terms of an age effect.

These data and our analyses are contextualized by a critical discussion that reflects on the implications of these general patterns: What do they mean for senior citizens’ abilities to be included and participate in a continuously digitalizing society?

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Digitalisation of money and the future of monetary policy

a column by Peter Bofinger for VOX: CEPR’s Policy Portal

The digitalisation of money has the potential to change traditional structures of the financial system. This column discusses four areas in which it may have an impact, and argues that while digitalisation will not erode the importance of central banks, banks could be massively challenged by new forms of intermediation.

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The money flower

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Digital revolutions in public finance

a column by Sanjeev Gupta, Michael Keen, Alpa Shah and Geneviève Verdier for VOX: CEPR’s Policy Portal

Digitalisation has vastly increased our ability to collect and exploit the information that governments use to implement macroeconomic policy. The column argues that the ability of governments to use the vast amounts of information held in the private sector on financial transactions are already making fiscal policy more efficient and effective. Problems of access to digital technology, cybersecurity risks, and the difficulty of organisational change in the public sector may slow the pace at which these opportunities are exploited.

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