Economic theory as it applies to public sector information

Abstract

IntroductionThis chapter 1 reviews the economics literature pertaining to public sector information. In addition, the economic arguments put forward in government studies and policy documents are reviewed, focusing on the current push for harmonization of public sector information policy across the European Union and the debate as to which model of information dissemination is preferable (i.e., the U.S. open access model versus the more restrictive European model). Some works by economists that appeared in the library and information science (LIS) and other literatures are covered, but the LIS literature in general is not reviewed.The term "public sector information" (PSI) is used here rather than "government information" or "official information." The terms are synonymous, although PSI can be construed more broadly, to include any information produced by public sector bodies, including cultural and educational institutions. Public sector information (and content) is any kind of information that is produced and/or collected by a public body as part of the institution's mandated role. It is directly generated by, and associated with, the functioning of the public sector and is readily useable in commercial applications (Organisation for Economic Co-operation and Development, Directorate for Science, Technology and Industry, Working Party on the Economy, 2006). As will be discussed, the economic value of its commercial use is the focus of much recent attention in Europe.The chapter begins with a brief summary of neoclassical economic theory, including the concepts of market failure and public goods, to lay the groundwork for the review. Readers familiar with these concepts may wish to move directly to the section on the economics of information. The literature on the history of information economics; the definitions of information used by economists; and their concepts of information as a public good, as a commodity, and as a contributor to social value are addressed. The review then focuses on the economic arguments and rationalization for public sector versus private sector supply of information, the impact of PSI on general economic efficiency, commercial re-use, value adding, and revenue generation. Then the literature on the pricing of information and the arguments around the imposition of user fees for PSI, and, finally, the arguments for CHAPTER 10 419 and against copyrighting PSI are reviewed. The vast literature on the economics of e-government and of privatization is not addressed. Neoclassical Economic TheoryNeoclassical economic theory and social welfare theory are of particular interest for this review because both underlie the development of the economics of information. As Nobel economist Donald Lamberton pointed out (1994a), neoclassical economics provided a base and a language for information economics, which was necessary in order to keep an open dialogue with the economics profession, as well as with international and national decision makers in industry and government.According to the neoclassic...

Cyberspace: Global Public Goods?

“…The essential criteria to distinguish goods as public goods are accessibility and allocation. Public goods are goods that can be used by more consumers at once with no effect on the utility of other consumers (Nilsen, 2010). On the other hand, private goods can be limited to a certain number of users and the consumption of a consumer leads to a decrease of the utility of other consumers (Kaul, 2009).…”

“…Some economists differentiate between information and knowledge (Nilsen, 2010). Machlup (1981) perceived information only as a process of knowledge transmission.…”

Wiedza i wydatki na B+R w krajach Unii Europejskiej

“…Wiedza i informacje uznawane są też niekiedy za dobra wspólne, a więc takie dobra publiczne, których produkcja i konsumpcja powodują efekty zewnętrzne. Istnieje też koncepcja informacji jako dobra "doświadczalnego" -dobra, którego trzeba doświadczyć, aby poznać jego wartość [Nilsen 2010]. …”

The value and challenges of public sector information

“…Indeed Drahos and Braithwaite warned that TRIPS was 'the first stage in the global recognition of an investment morality that sees knowledge as a private, rather than public, good ' (2003, p. 10 Economists have quite naturally written a great deal about the economics of information and some have examined the value of the public domain pointing out that in a knowledge economy there is both economic and social value in 'open' information (Pollock 2010;Weiss 2003). While Kirsti Nilsen (2010) in her review of economic theory and public sector information noted there had been very little specific literature on the economics of public sector information, this is changing rapidly as governments recognise that the reuse of PSI, particularly of datasets, can and does generate enormous revenues for both the public sector itself and for the private sector (Dekkers et al 2006;Vickery 2011;Weiss 2010).…”