Efficiency of broadband internet adoption in European Union member states
AbstractThis paper is devoted to econometric analysis of broadband adoption efficiency in EU member states. Stochastic frontier models are widely used for efficiency estimation. We enhanced the stochastic frontier model by adding a spatial component into the model specification to reflect possible dependencies between neighbour countries. A maximum likelihood estimator for the model was developed. The proposed spatial autoregressive stochastic frontier model is used for estimation of broadband adoption efficiency. We confirmed a negative impact of average prices of broadband services on broadband adoption in a country and also discovered a significant negative influence of a level of population income inequality. Significant positive spatial effects also have been revealed, so higher broadband penetration rates in neighbour countries have a positive impact on broadband adoption in a given country.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 34183.
Date of creation: 30 Jun 2011
Date of revision:
spatial stochastic frontier; broadband adoption; efficiency;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-22 (All new papers)
- NEP-CIS-2011-10-22 (Confederation of Independent States)
- NEP-EFF-2011-10-22 (Efficiency & Productivity)
- NEP-ICT-2011-10-22 (Information & Communication Technologies)
- NEP-ORE-2011-10-22 (Operations Research)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lavado, Rouselle F. & Barrios, Erniel B., 2010.
"Spatial Stochastic Frontier Models,"
DP 2010-08, Philippine Institute for Development Studies.
- Alexandra Schmidt & Ajax Moreira & Steven Helfand & Thais Fonseca, 2009.
"Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency,"
Journal of Productivity Analysis,
Springer, vol. 31(2), pages 101-112, April.
- Alexandra M. Schmidt & Ajax R. B. Moreira & Thais C. O. Fonseca & Steven M. Helfand, 2006. "Spatial Stochastic Frontier Models: accounting for unobserved local determinants of inefficiency," Discussion Papers 1220, Instituto de Pesquisa Econômica Aplicada - IPEA.
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