Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33854 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2379
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In EU countries, opening up of telecommunications markets and regulations have helped to reduce the price of digital services which is an important quasi-input factor in all firms. Integrating the use of telecommunications in a macroeconomic production function is the analytical starting point for our interdependent analysis of output, use of telecommunications and employment. Based on unit root and co-integration analysis as well as an error correction three-equation model which are estimated simultaneously, we present results both on long run links and short run links between telecommunications, output and employment. Considering various scenarios suggests that a fall in the relative price of telecommunications can generate a cumulated employment increase of 760,000 within seven years in Germany. The institutional setup for regulating telecommunications could be improved in Germany and other EU countries.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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