Competition Reform and Household Welfare: A Microsimulation Analysis of the Telecommunication Sector in Ethiopia
Gespeichert in:
| Beteilige Person: | |
|---|---|
| Format: | Elektronisch E-Book |
| Sprache: | Englisch |
| Veröffentlicht: |
Washington, D.C
The World Bank
2021
|
| Links: | https://doi.org/10.1596/1813-9450-9516 |
| Abstract: | This paper presents a novel method for estimating the likely welfare effects of competition reforms for both current and new consumers. Using household budget survey data from 2015/16 for Ethiopia and assuming a reform scenario that dilutes the market share of the telecommunications state-owned monopoly to 45 percent, the model predicts a 25.3 percent reduction in the price of mobile services and an increase of 4.6 million new users of mobile phone services. This reform is expected to generate a welfare gain of 1.37 percent among all consumers. Poverty rates are expected to decline by 0.31 percentage point, driven by a reduction of 0.22 percentage point for current consumers and 0.09 percentage point among new users. Inequality would increase by 0.23 Gini point since better-off consumers are more likely to reap the benefits of greater competition. This method represents a powerful tool for supporting the analysis of competition reforms in developing countries, particularly in sectors known for excluding significant segments of the population due to high consumer prices |
| Umfang: | 1 Online-Ressource (22 Seiten) |
| DOI: | 10.1596/1813-9450-9516 |
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| 100 | 1 | |a Rodriguez-Castelan, Carlos |e Verfasser |4 aut | |
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| 520 | 3 | |a This paper presents a novel method for estimating the likely welfare effects of competition reforms for both current and new consumers. Using household budget survey data from 2015/16 for Ethiopia and assuming a reform scenario that dilutes the market share of the telecommunications state-owned monopoly to 45 percent, the model predicts a 25.3 percent reduction in the price of mobile services and an increase of 4.6 million new users of mobile phone services. This reform is expected to generate a welfare gain of 1.37 percent among all consumers. Poverty rates are expected to decline by 0.31 percentage point, driven by a reduction of 0.22 percentage point for current consumers and 0.09 percentage point among new users. Inequality would increase by 0.23 Gini point since better-off consumers are more likely to reap the benefits of greater competition. This method represents a powerful tool for supporting the analysis of competition reforms in developing countries, particularly in sectors known for excluding significant segments of the population due to high consumer prices | |
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| id | DE-604.BV049081974 |
| illustrated | Not Illustrated |
| indexdate | 2024-12-20T20:00:18Z |
| institution | BVB |
| language | English |
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| publishDate | 2021 |
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| publisher | The World Bank |
| record_format | marc |
| spellingShingle | Rodriguez-Castelan, Carlos Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia |
| title | Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia |
| title_auth | Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia |
| title_exact_search | Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia |
| title_full | Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia Carlos Rodriguez-Castelan |
| title_fullStr | Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia Carlos Rodriguez-Castelan |
| title_full_unstemmed | Competition Reform and Household Welfare A Microsimulation Analysis of the Telecommunication Sector in Ethiopia Carlos Rodriguez-Castelan |
| title_short | Competition Reform and Household Welfare |
| title_sort | competition reform and household welfare a microsimulation analysis of the telecommunication sector in ethiopia |
| title_sub | A Microsimulation Analysis of the Telecommunication Sector in Ethiopia |
| url | https://doi.org/10.1596/1813-9450-9516 |
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