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Broadband’s Relationship to Rural Housing Values

Author

Listed:
  • Deller, Steven

    (University of Wisconsin-Madison)

  • Whitacre, Brian

    (Oklahoma State University)

Abstract

Using data for remote rural U.S. counties (n=887) we estimate the impact of broadband Internet access on median housing value. We account for spatial dependencies in the joint determination of investments in broadband access and housing values using a modified version of the feasible generalized spatial two stage least squares (FGS2SLS) estimator suggested by Kelejian and Prucha (1998). The data support the central hypothesis that remote rural housing values are positively impacted by higher access. Our estimates suggest that there are declining returns to speed availability, with access to at least some type of Internet being more valuable than having only a very high-speed connection accessible.

Suggested Citation

  • Deller, Steven & Whitacre, Brian, 2018. "Broadband’s Relationship to Rural Housing Values," Staff Paper Series 591, University of Wisconsin, Agricultural and Applied Economics.
    • Handle: RePEc:ecl:wisagr:591
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    File URL: https://api.aae.wisc.edu/pubs/pdf/sps/stpap591.pdf
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