Off the Hook: Measuring the Impact of Mobile Telephone Use on Economic Development of Households in Uganda using Copulas

Abstract

It is now widely understood that mobile phone use has beneficial effects on development in developing countries, but little is known about the effects at the household level. We examine the impact of mobile telephone use on household income using a unique cross-sectional data set from Uganda. We use a novel econometric technique to handle endogeneity, which models the correlation between the endogenous regressor and the error term with copulas. To the best of our knowledge, this is the first time that the copula method has been applied in the economic development literature. We find a positive impact of mobile phone use on income.