Professor Shane Greenstein, Elinor and Wendell Hobbs Professor at the Kellogg School of Management, Northwestern University, estimates that broadband adds about $10 billion per year in new GDP and another $5 billion in unmeasured consumer surplus. These are large effects, but smaller than some previous estimates. The reason for the difference is that most studies attribute all gains from the Internet to broadband, rather than just the gains that came from upgrading to broadband from dialup. Professor Greenstein’s research, based on the economics of new goods, will help give policymakers a more accurate estimate of the benefits of broadband subsidies. Professor Greenstein will discuss his findings at our event this Friday on Capitol Hill.
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Shane Greenstein is the MBA Class of 1957 Professor of Business Administration at Harvard Business School and co-chair of the Harvard Business School Digital Initiative. He teaches in the Technology, Operations and Management Unit. Greenstein is also co-director of the program on the economics of digitization at The National Bureau of Economic Research. Encompassing a wide array of questions about computing, communication, and Internet markets, Greenstein’s research extends from economic measurement and analysis to broader issues. His most recent book focuses on the development of the commercial Internet in the United States. He also publishes commentary on his blog, Digitopoly, and his work has been covered by media outlets ranging from The New York Times and The Wall Street Journal to Fast Company and PC World. Greenstein previously taught at the Kellogg School of Management, Northwestern University, and at the University of Illinois, Urbana/Champaign. He received his B.A. from University of California at Berkeley and Ph.D. from Stanford University, both in economics.
