Timing and Determinants of Local Residential Broadband Adoption: Evidence from Ireland
AbstractThis paper tests whether households that are offered broadband service for the first time tend to delay in taking it up. Using cross-sectional data on broadband take-up and socioeconomic characteristics of small areas in Ireland, linked to GIS data on ADSL availability, I find that local adoption rates are positively associated with the time elapsed since service was first offered. The strength of this association increases for the first two years after local enabling of service and then decreases to zero after about five years. The paper also includes estimates of the effect of various household characteristics on adoption, finding effects broadly consistent with previous literature. Simultaneity in demand and supply are addressed using 2SLS regression. Further research will be needed to explain the mechanisms behind lags in adoption behaviour, but those evaluating investments or subsidies in broadband infrastructure should such take lags into account.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP361.
Date of creation: Nov 2010
Date of revision:
Other versions of this item:
- Lyons, Seán, 2012. "Timing and Determinants of Local Residential Broadband Adoption: Evidence from Ireland," Papers WP432, Economic and Social Research Institute (ESRI).
- Lyons, Sean, 2010. "Timing and determinants of local residential broadband adoption: evidence from Ireland," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 24, International Telecommunications Society (ITS).
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-30 (All new papers)
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