A New Approach to Measuring the Standard of Living in Least Developed Countries

In "least developed countries" (LDCs), the growth of telecommunications is rooted primarily in mobile, rather than wired, technology. Mobile networks provide people living in isolated, rural areas, as well as in urban centers, new options for handling everyday communications and financial transactions.

The potential increases in LDC consumer welfare are substantial. Yet, the realization of these economic benefits depends on how LDC consumers react to new wireless services at different price and income levels. It is logical, then, for economists and policymakers to analyze the welfare effects of mobile networks from a behavior-centric point of view.

Hudson Institute's Center for the Economics of the Internet and its Director, Harold Furchtgott-Roth, welcomed Jerry Hausman of MIT to discuss new insights from his paper "Mobile Phones in Developing Countries."

Jerry A. Hausman is the MacDonald Professor of Economics at MIT. Professor Hausman received a D.Phil. (Ph.D.) degree from Oxford University where he was a Marshall Scholar. He has been a faculty member at MIT for 41 years. Professor Hausman's research concentrates on econometrics and applied microeconomics. His applied research has been in effects of taxation on the economy, telecommunications, regulation, and industrial organization.