Do municipal broadband networks stimulate or crowd out private investment? an empirical analysis of employment effects
This chapter analyzes the potential benefits of municipal-owned broadband in terms of stimulating local economic activity. Some economists posit that muni broadband might discourage investment by privately owned Internet service providers, thereby offsetting any incremental investment from local bus...
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| Veröffentlicht in: | Digitized labor |
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| Format: | UnknownFormat |
| Sprache: | eng |
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2018
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Tag hinzufügen | Zusammenfassung: | This chapter analyzes the potential benefits of municipal-owned broadband in terms of stimulating local economic activity. Some economists posit that muni broadband might discourage investment by privately owned Internet service providers, thereby offsetting any incremental investment from local businesses that exploit the muni network. The chapter offers original empiricism that informs this crowding-out hypothesis. For privately owned networks, private employment growth increases whenever the (private) network reaches download speeds of 50 Mbps. In contrast, there is no observable correlation between high-speed, muni-owned networks and private-sector employment growth. Thus, statewide obstacles to funding muni networks could serve as a way for cities to temper their demand for new networks, in the same way that states would prefer cities temper their demand for new sports stadiums. |
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| ISBN: | 9783319770468 |