Net Neutrality, Reclassification and Investment: A Further Analysis
نویسنده
چکیده
In a recent paper, Net Neutrality, Reclassification and Investment: A Counterfactual Analysis1, I used the difference-in-differences methodology to estimate the effect on telecommunications investment of the Federal Communications Commission’s (“FCC”) Net Neutrality policies, including especially the Agency’s decision to reclassify broadband as a Title II common carrier telecommunications service.2 I took this approach because far too many analysts have focused on the changes in nominal levels of capital expenditures over time to measure the investment effects of the FCC’s 2015 Open Internet Order, comparisons which—as discussed in the prior paper—are utterly meaningless.3 The relevant question for public policy is not whether capital expenditures rise or fall, but rather whether such expenditures are below the level they would have been “but for” the regulatory intervention. A counterfactual analysis, like that offered in my earlier work and again here, is required for such a comparison.
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