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Diffusion of home computers and social networks: a study using Japanese panel data

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  • Eiji Yamamura

Abstract

In this article, I explore the interaction effects of social networks and local spillovers in the diffusion of computers using the panel data from 47 Japanese prefectures for the years 1988-2000. Controlling for unobserved prefecture-specific fixed effects and an endogeneity bias of the lagged dependent variable (the computer possession rate), I find that people are more likely to own computers in areas where the possession rate of computers is higher and where social networks are more strongly connected. Further results suggest a robust complementarity between existing computer owners and the social network. Overall, the empirical study provides evidence that the people learn from neighbours who own computers via a social network enhancing spillovers and reducing transaction costs. That is, the social network reduces the cost of being acquainted with experienced computer owners and so being able to learn from them, thereby attracting new adopters.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 15 (2008)
Issue (Month): 15 ()
Pages: 1231-1235

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Handle: RePEc:taf:apeclt:v:15:y:2008:i:15:p:1231-1235

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Cited by:
  1. Yamamura, Eiji, 2009. "How do neighbors influence investment in social capital? : Homeownership and length of residence," MPRA Paper 15174, University Library of Munich, Germany.
  2. Yamamura, Eiji, 2009. "Comparison of the effects of homeownership by individuals and their neighbors on social capital formation: Evidence from Japanese General Social Surveys," MPRA Paper 19495, University Library of Munich, Germany.
  3. Eiji Yamamura, 2011. "Differences in the effect of social capital on health status between workers and non-workers," International Review of Economics, Springer, vol. 58(4), pages 385-400, December.
  4. Yamamura, Eiji & Mano, Yukichi, 2011. "An investigation into the positive effect of an educated wife on her husband’s earnings: the case of Japan in the period between 2000 and 2003," MPRA Paper 31097, University Library of Munich, Germany.
  5. Yamamura, Eiji, 2010. "What Discourages Participation in the Lay Judge System (Saiban’in Seido) of Japan? Interaction between the Secrecy Requirement and Social Networks," MPRA Paper 21534, University Library of Munich, Germany.
  6. yamamura, eiji, 2007. "The Different Impacts of Socio-economic Factors on Suicide between Males and Females," MPRA Paper 10175, University Library of Munich, Germany.
  7. Yamamura, Eiji, 2008. "The role of social capital in homogeneous society: Review of recent researches in Japan," MPRA Paper 11385, University Library of Munich, Germany.
  8. Yamamura, Eiji, 2010. "Effect of Linguistic Heterogeneity on Technology Transfer: An Economic Study of FIFA Football Rankings," MPRA Paper 27181, University Library of Munich, Germany.
  9. Yamamura, Eiji, 2010. "Homeownership and investment for social capital in Japan: Dynamic Panel approach," MPRA Paper 26182, University Library of Munich, Germany.
  10. Yamamura, Eiji & Mano, Yukichi, 2010. "The Relationship Between the Effects of a Wife’s Education on her Husband’s Earnings and her Labor Participation: Japan in the period 2000 -2003," MPRA Paper 22439, University Library of Munich, Germany.

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