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Cambini scientific seminar discussion hasbi


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Carlo Cambini discussing Maude Hasbi "Impact of superfast broadband on local economic growth: empirical evidence using a matching estimator

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Cambini scientific seminar discussion hasbi

  1. 1. Impact of Superfast Broadband on Local Economic Growth: Empirical Evidence Using a Matching Estimator by Maude Hasbi Carlo Cambini Politecnico de Torino & EUI-FSR
  2. 2. Goal of the paper  Assess the impact of differential broadband technologies on economic outcomes: regional growth and attractiveness of new businesses (+3,9% av. and +4,8% of new companies; larger effect for companies of tertiary sectors)  Key issue: one of the very few papers with European high-speed fiber broadband data  relevant for EU policies (targets and subsidies)  relevant because empirical evidence is missing  Based on a rich and sophisticated dataset of around 36000 observations!  Hot topics in EU!
  3. 3. Comments/1  No possibilities to check for differences in technology: FTTH has the same impact of VDSL (at 15%)  Technology neutral approach….  But differentiated effect of technology is expected  Use of different thresholds for VDSL (much higher than 15%); different quantitative effects?  No check for presence of mobile broadband (LTE, especially in rural areas)  Estimation result are based only on matching estimator:  More robustness analysis might be needed, e.g. IV approach
  4. 4. Comments/2  Reverse causality issue: not clear how it is treated.  FTTH only in profitable areas, i.e. in areas where attractiveness of new businesses or household income is higher  [PIN in low profitable areas … but here mobile coverage (4G/LTE) might be a serious competitor]  Alternative estimator  IV or panel GMM??  Ahfeldt et al. (2016) use a very sofisticated IV approach of neighbours  Or DiD approach:  Interaction between a dummy and main variables  Finally …. an interested question: can you evaluate the impact of the French co-investment broadband policy?