Publication:
Demand for Internet access and use in Spain

Loading...
Thumbnail Image
Official URL
Full text at PDC
Publication Date
2005
Advisors (or tutors)
Editors
Journal Title
Journal ISSN
Volume Title
Publisher
Instituto Complutense de Análisis Económico. Universidad Complutense de Madrid
Citations
Google Scholar
Research Projects
Organizational Units
Journal Issue
Abstract
The goal of this paper is to analyze a new phenomenon: Internet demand in Spain. To do so, we use a new high quality data set and advanced econometric techniques for estimating Internet demand functions, incorporating the socio-demographic characteristics of the individuals. We begin with a graphic analysis of the data, searching for relationships between the different characteristics. Then we specify and estimate two econometric models, one for broadband access at home and another for Internet use intensity. We also find that 25.2% of the Spanish population accesses the Internet at home, but less than half uses broadband connection. This demand is positively related to income and other technological attributes and negatively related to socio-demographic attributes such as habitat and age. Our results are compatible with previous literature for other countries, although there is a important difference: broadband Internet connections are still considered as a luxury good in Spain.
Description
Keywords
Citation
Artle, R. and Averous, C. “The Telephone System as a Public Good: Static and Dynamic Aspects” Bell Journal of Economics and Management Science, Vol. 4, No. 1, 89-100, spring 1973. Cassel, C., “Demand for and Use of Additional Lines by Residential Customers”, in Loomis and Taylor (eds.) The Future of the Telecommunications Industry: Forecasting and Demand Analysis, Kluwer Academic Publishers, Boston, 1999. Davidson, R. and MacKinnon, J., “Econometric Theory and Methods” Oxford University Press, 1993. Duffy-Deno, K. T. “Demand for Additional Telephone Lines: An Empirical Note”, Information Economics and Policy, 13, 301-309, 2001. Friedman, M. “A Theory of the Consumption Function”, Princeton University Press for the National Bureau of Economic Research, 1957. Goodman, A. and Kawai, M. “Permanent Income, Hedonic Price and Demand for Housing: New Evidence”, Journal of Urban Economics, 12, 214-237, 1982. Goolsbee, A. “The Value of Broadband and the Deadweight Loss of Taxing New Technology”, Mimeo, University of Chicago, 2000. Heckman, J. “Sample Selection Bias as a Specification Error” Econometrica, Vol. 47, No. 1, January 1979. Jackson, M., Lookabaugh, T., Savage, S., Sicker, D. and Waldman, D. “Broadband Demand Study: Final Report” Telecommunications Research Group, University of Colorado, 2003. Madden, G. and Coble-Neal, G., “Australian Residential Telecommunications Consumption and Substitution Patterns” preliminary draft, 15th International Telecommunications Society Meeting, Berlin, Germany, 4-7 September 2004. Madden, G., Savage, S. and Simpson, M. “Information Inequality and Broadband Network Access: An Analysis of Australian Household Survey Data” Industry and Corporate Change, Oxford University Press, 1049-1056, 1996. Mc Fadden, D. “Conditional Logit Analysis of Qualitative Choice Behavior” in Zarembka (ed.) Frontiers in Econometrics, Academic Press, pp. 1117-1156, 1974. Mc Fadden, D. “Econometric Analysis of Qualitative Response Models” in Z. Grilliches and M. Intriligator (eds.) Handbook of Econometrics, Amsterdam, North Holland, pp. 1376-1425, 1984. Meng, C. and Schmidt, P. “On the Cost of Partial Observability in the Bivariate Probit Model” International Economic Review, Vol. 26, No. 1, February 1985. Organization for Economic Cooperation and Development, “The Development of Broadband in OEDC Countries”, October 29, 2001. Owen, B. “Broadband Mysteries” in Crandall, R. and Alleman, J. (ed.) Broadband: Should we Regulate High-speed Internet Access? AEI – Brookings Joint Center for Regulatory Studies, 2002. Pérez Amaral, T., F. Alvarez and B. Moreno “Business Telephone Traffic Demand in Spain 1980-1991: an Econometric Approach”, Information Economics and Policy, 7, 115-134, 1995. Rappoport P., Taylor L., and Kridel D. “The Demand of Broadband: Access, Content, and the Value of Time”, in Broadband: Should We Regulate HighSpeed Internet Access?, ed. by R. W. Crandall and J. H. Alleman, AEIBrookings Joint Centre for Regulatory Studies, Washington, D.C., 2003. Sigelman, L. and Zeng, L. “Analyzing Censored and Sample-Selected Data with Tobit and Heckit Models” Political Analysis, 8:2, The George Washington University Working Papers, December 16, 1999. Taylor, L. D. “Towards a framework for analyzing internet demand”, Manuscript, U. of Arizona, 2000. Taylor, L. D. “Telecommunications Demand in Theory and Practice” Kluwer Academic Publishers, 1993. U.S. Department of Commerce, and National Telecommunications & Information Administration, “A Nation Online: How Americans Are Expanding Their Use of the Internet”, February 2002. Varian, H. “The Demand for Bandwidth: Evidence from the INDEX Project”, Mimeo, University of California, Berkeley, 2002.