tailieunhanh - The Broadband Bonus: Accounting for Broadband Internet’s Impact on U.S. GDP

The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements in order to conform with generally accepted accounting principles. Changes in such estimates and assumptions may affect amounts reported in future periods. Cash flow statements Cash flow statements have been prepared under the indirect method in accordance with Dutch GAAP, which is substantially similar to the requirements of SFAS No. 95 ‘Statement of Cash flows'. Cash flows in foreign currencies have been translated into Dutch guilders using the average rates of exchange for the periods involved | Technology Policy institute studying the Global Information Economy o Publication of Note The Broadband Bonus Accounting for Broadband Internet s Impact on . GDP Shane Greenstein and Ryan C. McDevitt January 2009 TPI Publications of Note are studies TPI believes provide important contributions but were not conducted by TPI scholars. TPI posts these studies on its website with the permission of the authors to increase the visibility of the research and help inform the policy process. Any views expressed in a Publication of Note are solely those of the author s and do not necessarily reflect the views of TPI or anybody affiliated with TPI. 1401 EYE STREET NW o SUITE 505 o WASHINGTON DC 20005 PHONE E-MAIL info@ WEB The Broadband Bonus Accounting for Broadband Internet s Impact on . GDP Shane Greenstein and Ryan C. McDevitt January 2009. Comments welcome. We are affiliated with Kellogg School of Management and Department of Economics Northwestern University respectively. We thank David Burstein Greg Crawford Ken Flamm Barbara Fraumeni John Horrigan Chuck Jackson Scott Savage Alicia Shems Dan Sichel Ali Yurukoglu and Philip Webre for useful conversations. We thank the Searle Foundation and the Kaufman Foundation for funding. All errors are our responsibility. Abstract How much economic value did the diffusion of broadband create We provide benchmark estimates for 1999 to 2006. We observe 39 billion of total revenue in Internet access in 2006 with broadband accounting for 28 billion of this total. Depending on the estimate households generated 20 to 22 billion of the broadband revenue. Approximately to billion was additional revenue created between 1999 and 2006. That replacement is associated with to billion in consumer surplus which is not measured via Gross Domestic Product GDP . An Internet-access Consumer Price Index CPI would have to decline by to per year for it to .

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