Gary Madden

Measuring Public Sector Efficiency: A Study of Economics Departments at Australian Universities

The 1987 Green Paper on Australian higher education included a recommendation for the abandonment of the binary system. The Dawkins plan effectively transferred resources from established universities to the former colleges of advanced education. This study compares the initial and subsequent performance of economics departments. The analysis applies survey data to a non-parametric data envelopment analysis model. Model results suggest that while overall performance has improved substantially, further productivity improvements are required for new universities to achieve best practice.

Telecommunications and economic growth

In an emerging global economy the ability of the telecommunications sector to provide an internationally competitive network for transferring information has significant implications for trade and economic growth. Because of recent large world‐wide investments in telecommunications infrastructure, quantifying the impact of telecommunications in economic growth has received much attention. However, economic analysts, in the absence of investment data for many developing countries, adopt the International Telecommunications (ITU) practice of using main telephone lines to measure the stock of telecommunications capital. The accuracy of this proxy has not been subject to careful statistical scrutiny. This study develops a supply‐side growth model which employs teledensity and the share of telecommunications investment in national income as telecommunications capital proxies. Estimation results suggest a significant positive cross‐country relationship between telecommunications capital and economic growth, when using alternative measures of telecommunications capital.

Economic determinants of global mobile telephony growth

This study examines the substitution effect between fixed-line and mobile telephony while controlling for the consumption externality associated with telephone networks. A dynamic demand model is estimated using a global telecommunications panel dataset comprised of 56 countries from 1995–2000. Estimation results show the presence of a substantial substitution effect. Additionally income and own-price elasticities are reported. Analysis of impulse responses for price, income and network size indicate substantial mobile telephone growth is yet to be realised. However, price ceilings imposed in the fixed-line network can retard the growth of the mobile network.

Emerging Australian Education Markets: A Discrete Choice Model of Taiwanese and Indonesian Student Intended Study Destination

Australia is among the leading exporters of higher education services, behind the US and the UK, for English-based instruction. During the past decade, Australia has experienced significant growth in international student numbers, and currently has a substantial share of the East Asian student market. Most of this growth has occurred in the higher education sector. It is important for the Australian higher education sector, in the face of growing competition and reduced government funding, to identify new markets. This study isolates factors that influence the choice of Australia as a preferred destination for international students in emerging regional markets. This paper uses data obtained from a survey of students in Indonesia and Taiwan to estimate a US/Australia and rest of world/Australia discrete destination choice model. This model identifies key factors that determine country choice.

R&D spillovers, information technology and telecommunications, and productivity in ASIA and the OECD

This paper examines the role research and development (R&D) plays in technology progress for a sample of OECD and Asian economies from 1980 to 1995. An empirical model is estimated which relates total factor productivity to domestic and foreign R&D activity, trade, and information technology and telecommunications (ITT). Model estimates confirm a positive relationship between national productivity and R&D activity exists in the long run. Further, the benefits of R&D can spillover countries through trade, in particular, trade in ITT equipment.

Some Economic and Social Aspects of Residential Internet Use in Australia

This study constructs a profile of the representative Australian residential Internet user from data obtained from a web-based survey. Survey data indicate the representative user is male, 20 to 40 years of age, highly educated, uses the Internet 8 hrs per week for e-mail and FTP, and has a monthly bill of AUD32. An ordered-logit model relates Internet use to price, sociodemographic and connection capacity variables. Model estimates show the probability of higher Internet use is greater for middle-income households, but declines with age of the user. Policy may be required to enhance access to lower-income groups, and to inform the elderly of the potential capabilities of the new technology. Further, model estimates suggest that Australian Internet subscribers prefer flat-rate pricing (or a combination of flat-rate and usage- sensitive pricing) over usage-sensitive pricing schemes. This result is consistent with Australian consumer attitudes toward local telephone and mobile cellular pricing.

Causal analysis of Australian economic growth and military expenditure: A note

Chowdhury (1991) applied Granger causality methods to military expenditure and economic growth series in 55 developing countries. This note applies a similar approach to Australia and finds no causal relationship between military expenditure and growth in either direction.

Productivity Growth And Market Structure In Telecommunications

This study examines sources of telecommunications sector productivity growth. Total factor productivity (TFP) growth is calculated using the Malmquist productivity index for a sample of 74 countries for the period 1991 through 1995. An econometric model is estimated which relates TFP growth to output growth, network digitisation, telecommunications development, output-mix, the business cycle and market structure. Model estimates suggest that higher digitisation rates dampen TFP growth in the short run, and cross-subsidisation of services creates inefficiency. However, developing countries can increase TFP growth through catch up, and increased privatisation and competition are conducive to productivity growth.

Frontiers of broadband, electronic and mobile commerce

I: E-COMMERCE BUSINESS MODELS.- Cellular 3G Broadband and WiFi.- Consumer Welfare and Cellular Telephony.- Cellular Broadband Internet Access.- Effect of Regulation.- Sunk Investment and Regulation.- Cellular Moves to 3G.- Requirements for 3G to be Successful.- Current 3G Market Experience.- Spectrum Auctions.- WiFi.- End to Government Regulation?.- Conclusion.- Acknowledgement.- References.- Geographic and Socially Embedded B2C and B2B E-Commerce.- Toward a Situated View of B2C E-Commerce.- Transaction Cost and Complementary Views of B2C E-Commerce.- Physical and Virtual Channel Synergy.- A Situated View of Click and Mortar Benefits.- Managing Situated E-Commerce.- Empirical Analyses of Strategy and Benefit.- Towards a Situated View of B2B E-Commerce.- Electronic Hierarchy and Small Networks.- Rise and Collapse of Third-party B2B E-Markets.- Geographic Business Communities and Situated B2B E-Commerce.- E-Commerce and Local Business Clusters.- Social Capital, B2B Electronic Coordination and Local Clusters.- Conclusion.- References.- SME International E-Commerce Activity.- SME Export Behavior and the Internet.- Maintained Assumptions.- SME E-Business.- Method.- Participant Firms.- Model.- International Web Use: Commitment, Sophistication and Adaptation.- Firm Factors: Capability and Business Relationships.- Environmental Factors: Market Change and Industry Norms.- Participant Firm Change.- Current E-Business Use.- Environmental and Firm Factor Change.- Model Stability.- Discussion.- Conclusions.- References.- SME Interaction in Supply Chains.- Small Business E-Market Entry Barriers.- Drivers and Barriers to Interoperability.- Drivers.- Barriers.- E-Business Principles.- Problem Identification.- Process Separation.- Business Solutions.- Stakeholder Support.- Governance and Funding.- Supply Chain Interoperability Initiatives.- B2B Registry and Integration Toolkit.- Information Technology Online Program.- Appliance Industry.- Mining Industry.- Textile Supply Chain Interoperability.- NOIE and the Path Ahead.- Conclusion.- II: TECHNOLOGY AND PRODUCTIVITY.- Deciding on Network Architecture for 3G Wireless Services.- Wireless Network Architectures.- IG Wireless Networks.- 2G Wireless Networks.- 3G Wireless Networks.- Innovation and Wireless Networks.- Analog to Digital.- GSM to GPRS.- GPRS to EDGE.- Moving to 3G.- Alternative 3G Paths.- GSM-based Network Migration.- CDMA-based Network Migration.- Real Options and Risk Neutrality.- Conclusion.- References.- Measurement of TFP Growth for US Telecommunications.- The Concept of Total Factor Productivity.- Indexes of Total Factor Productivity.- Choice of TFPI.- TFPI: Updating the FCC Study.- Calculation of Output Quantity Index.- Calculation of Input Quantity Index.- Calculation of the TFPI.- TFPI: Intrastate Disaggregation and Broadband.- Conclusion.- References.- Measuring TFP for an Expanding Telecommunications Network.- Network Expansion.- Econometric Cost Model.- Model Estimation: Issues and Results.- Post-estimation Analysis.- Conclusion.- Appendix: Timeline of Technological Advance.- References.- Dynamic Aspects of US Telecommunications Productivity Measurement.- Prices and Investment.- TFP Trends and Sources.- Dynamic Aspects.- Spillover or Network Effect Measurement.- Measurement of Infrastructure Investment Benefit.- Conclusion.- Acknowledgement.- References.- III: DEMAND AND PRICING.- Korean Wireless Data Communication Markets and Consumer Technology.- Wireless Data Communication.- Mobile Internet and Wireless LAN Market Trends.- WDC Service Business Structure.- Competitive WDC Factors.- Competition by Service Characteristics.- Conjoint Design and WDC Competitive Advantage.- Sample Design.- Conjoint Questionnaire.- Empirical Model.- Estimation Results.- Business Strategy for Service Providers.- Economic Impact.- Conclusion.- Appendix: Sample of Cards Used in the Survey.- References.- WTP Analysis of Mobile Internet Demand.- Descriptive Analysis.- Network Subscription Choice.- Modeling WTP for Wireless Internet Access.- Price Elasticity Calculations.- Conclusions.- References.- Asymmetry in Pricing Information Goods.- Information Good Demand Characteristics.- Alternative Pricing Strategies.- Marginal Cost Pricing.- Monopolistic Pricing.- Firm Survival and Pricing in Information Goods Markets.- Firm Industry Exit with the Initial Version.- Firm Industry Exit with the Upgraded Version.- Firm Survives Indefinitely.- Conclusion.- References.- IV: MARKET GROWTH, REGULATION AND INVESTMENT.- Measuring Telecommunication System Network Effects.- Modeling Telecommunications Demand.- Data and Variables.- Estimation and Results.- Conclusion.- Identifying the Exogenous Structural Parameters.- References.- Open Access Rules and Equilibrium Broadband Deployment.- Broadband Technology and Regulation.- Broadband Technology and Cost Characteristics.- Policy Promoting Broadband Competition.- A Technology Race Model of Broadband Deployment.- Duopoly Broadband Race Equilibrium.- Comparative-static Analysis.- Regulation of Non-broadband Service.- Open Access Rules and the Equilibrium Broadband Race.- Resale of Monopoly Broadband Service.- Interim Facility Sharing.- Pure Broadband Resale.- Symmetric and Asymmetric Facility Sharing.- Conclusions.- Acknowledgement.- Equilibrium Deployment.- Comparative Statics.- References.- Spectrum Management and Mobile Telephone Service Markets.- Mobile Telephone Service Market Innovation.- Approaches to Spectrum Management.- Spectrum Management Regimes.- Spectrum Management and Market Organization.- Spectrum Management and Innovation.- Conclusions.- Acknowledgements.- References.- Rational Explanations of ICT Investment.- Recent OECD ICT Investment.- Optimal Investment Strategy.- Implications of Rational Accounting.- Conclusion.- References.- V: DEVELOPMENT IMPERATIVE.- North African Information Networks.- Demography and Economic Indicators.- Information Sector Reform.- Information Networks.- Conclusions.- References.- OECD Broadband Market Developments.- Broadband and the OECD.- Broadband Subscription.- Between OECD Member Country Digital Divide.- Within OECD Member Country Digital Divide.- Bridging the Divide.- Subscriber Access Thresholds.- Technical Solutions.- Addressing the Backhaul Problem.- Policy and Conclusions.- Acknowledgement.- References.- Understanding the Evolving Digital Divide.- Digital Divide Statistics.- North-South Production and ICT Investment.- Joint Ventures and Optimized Current Output.- Investment and Applications Sector Volatility.- Optimal Investment Strategy.- Implications for ICT Investment and the Digital Divide.- Conclusion.- References.- List of Contributors.

Asia-Pacific Telecommunications Liberalisation and Productivity Performance

This study examines the growth in total factor productivity (TFP) of 12 Asia–Pacific telecommunications carriers for the period 1987 through 1990. Carriers are chosen to represent the stages of telecommunications liberalisation identified by the International Telecommunication Union (1995a). A model relating TFP growth to output growth, changes in output mix, technology change and market competition and private ownership is estimated on a unique data set obtained from telecommunications carrier annual reports. Empirical results show competition, private ownership, technology change and scale economies improve carrier TFP growth.