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How broadband changes online and offline behaviors

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Author Info

  • Kolko, Jed

Abstract

Using longitudinal panel data on Internet subscriptions and online and offline activities, I assess how broadband adoption affects behavior. Consistent with previous research, this study finds that broadband adopters increase their overall Internet usage. However, broadband adoption is associated with an increase in relatively few specific applications, like downloading music and online purchasing. Among "socially desirable" activities that governments seek to increase by encouraging broadband adoption, only researching health information rises among broadband adopters. Usage of job and career websites and usage of government sites does not rise as people move from dial-up to broadband. Among offline activities, broadband adoption lowers time spent playing video games but has no statistically significant effect on other activities like reading magazines and watching TV. OLS with person-level fixed effects and the difference-in-differences matching estimator yield similar findings. The results are somewhat sensitive to the time period studied, which could indicate that adopters at different stages of the technology's diffusion respond differently to broadband adoption; it could also reflect the rapid changes in online activities and broadband technology.

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Bibliographic Info

Article provided by Elsevier in its journal Information Economics and Policy.

Volume (Year): 22 (2010)
Issue (Month): 2 (May)
Pages: 144-152

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Handle: RePEc:eee:iepoli:v:22:y:2010:i:2:p:144-152

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Web page: http://www.elsevier.com/locate/inca/505549

Related research

Keywords: Broadband Internet Online Consumer behavior;

References

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  1. Felix Oberholzer-Gee & Koleman Strumpf, 2007. "The Effect of File Sharing on Record Sales: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, vol. 115, pages 1-42.
  2. Austan Goolsbee & Peter J. Klenow, 1999. "Evidence on Learning and Network Externalities in the Diffusion of Home Computers," NBER Working Papers 7329, National Bureau of Economic Research, Inc.
  3. Brown, Jeffrey, 2000. "Does the Internet Make Markets More Competitive? Evidence from the Life Insurance Industry," Working Paper Series rwp00-007, Harvard University, John F. Kennedy School of Government.
  4. Joel Waldfogel, 2007. ""Lost" on the Web: Does Web Distribution Stimulate or Depress Television Viewing?," NBER Working Papers 13497, National Bureau of Economic Research, Inc.
  5. Jess Gaspar & Edward Glaeser, 1996. "Information Technology and the Future of Cities," NBER Working Papers 5562, National Bureau of Economic Research, Inc.
  6. Morton, Fiona Scott & Zettelmeyer, Florian & Silva-Risso, Jorge, 2001. "Internet Car Retailing," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 501-19, December.
  7. Sinai, Todd & Waldfogel, Joel, 2004. "Geography and the Internet: is the Internet a substitute or a complement for cities?," Journal of Urban Economics, Elsevier, vol. 56(1), pages 1-24, July.
  8. Austan Goolsbee, 2000. "In A World Without Borders: The Impact Of Taxes On Internet Commerce," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 561-576, May.
  9. Goldfarb, Avi & Prince, Jeff, 2008. "Internet adoption and usage patterns are different: Implications for the digital divide," Information Economics and Policy, Elsevier, vol. 20(1), pages 2-15, March.
  10. Hitt, Lorin & Tambe, Prasanna, 2007. "Broadband adoption and content consumption," Information Economics and Policy, Elsevier, vol. 19(3-4), pages 362-378, October.
  11. Kuhn, Peter J. & Skuterud, Mikal, 2002. "Internet Job Search and Unemployment Durations," IZA Discussion Papers 613, Institute for the Study of Labor (IZA).
  12. Kolko, Jed, 2010. "A new measure of US residential broadband availability," Telecommunications Policy, Elsevier, vol. 34(3), pages 132-143, April.
  13. Matthew Gentzkow, 2007. "Valuing New Goods in a Model with Complementarity: Online Newspapers," American Economic Review, American Economic Association, vol. 97(3), pages 713-744, June.
  14. Fiona Scott Morton & Florian Zettelmeyer & Jorge Silva-Risso, 2001. "Internet Car Retailing," NBER Chapters, in: E-commerce, pages 501-519 National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Trevor Roycroft, 2013. "Empirical study of broadband adoption using data from the 2009 Residential Energy Consumption Survey," Journal of Regulatory Economics, Springer, vol. 43(2), pages 214-228, April.
  2. Bekkerman, Anton & Gilpin, Gregory, 2013. "High-speed Internet growth and the demand for locally accessible information content," Journal of Urban Economics, Elsevier, vol. 77(C), pages 1-10.
  3. Jason Chan & Anindya Ghose & Robert Seamans, 2013. "The Internet and Hate Crime: Offline Spillovers from Online Access," Working Papers 13-02, NET Institute.

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