THE ROLE OF GOVERNMENT in Digital Age

THE ROLE OF - THE ROLE OF GOVERNMENT IN A DIGITAL AGE JOSEPH E STIGLITZ PETER R ORSZAG JONATHAN M ORSZAG COMMISSIONED BY THE COMPUTER

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T HE R OLE OF G OVERNMENT I N A D IGITAL A GE J OSEPH E. S TIGLITZ P ETER R. O RSZAG J ONATHAN M. O RSZAG C OMMISSIONED BY THE C OMPUTER & C OMMUNICATIONS I NDUSTRY A SSOCIATION O CTOBER 2000
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1 About This Study This study was commissioned by the Computer & Communications Industry Association (CCIA) as an independent analysis of the appropriate role for government in an information economy. The views and opinions expressed in this study are solely those of the authors and do not necessarily reflect the views and opinions of CCIA. The authors of the study are: Joseph Stiglitz ([email protected]) is Professor of Economics at Stanford University, Senior Fellow at the Brookings Institution, and Senior Director and Chairman of the Advisory Committee at Sebago Associates, Inc., an economic policy consulting firm. Previously, Dr. Stiglitz served as the World Bank's Chief Economist and Senior Vice President for Development Economics and, before that, as the Chairman of the President's Council of Economic Advisers. Peter Orszag ([email protected]) is President of Sebago Associates, Inc., and a lecturer in economics at the University of California, Berkeley. Prior to founding Sebago Associates, Dr. Orszag served as Special Assistant to the President for Economic Policy at the White House. Jonathan Orszag ([email protected]) is the Managing Director of Sebago Associates, Inc. Prior to joining Sebago Associates, Mr. Orszag served as the Assistant to the Secretary of Commerce and Director of the Office of Policy and Strategic Planning. Additional biographical information about the authors is available on page 120. The authors thank numerous commentators (including academics, government officials, information policy specialists, and industry analysts) for extremely valuable insights and assistance on this report. The authors also thank John Ifcher, Aaron Klein, Diane Whitmore, and Pai-Ling Yin for excellent research assistance.
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2 Table of Contents Page About This Study 1 Executive Summary 4 Introduction 6 Part I: Information Technology and Government Policy 11 I. The Impact of Information Technology on the Economy, Business, and Government 12 Impact of information technology on the economy 12 Impact of information technology on business 16 Impact of information technology on government 25 II. The Theory of the Government’s Role in a Digital Age 30 Public provision versus public financing 36 The role of government in a “bricks and mortar” economy 38 The role of government in a digital economy 39 III. Current Government Policy 47 Part II: Principles for Government Action 49 Principles for Government Provision of Goods and Services in a Digital Economy 50 Green Light Principles for Governmental Activity 53 Principle 1: Providing public data and information is a proper governmental role 53 Principle 2: Improving the efficiency with which governmental services are provided is a proper governmental role 54 Principle 3: The support of basic research is a proper governmental role 56 Yellow Light Principles for Governmental Activity 57
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This note was uploaded on 10/03/2010 for the course CSE 1234 taught by Professor Cho during the Spring '10 term at Bangladesh University of Eng and Tech.

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THE ROLE OF - THE ROLE OF GOVERNMENT IN A DIGITAL AGE JOSEPH E STIGLITZ PETER R ORSZAG JONATHAN M ORSZAG COMMISSIONED BY THE COMPUTER

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