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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.

Suggested Citation

  • Eiji Yamamura, 2008. "Diffusion of home computers and social networks: a study using Japanese panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 15(15), pages 1231-1235.
  • Handle: RePEc:taf:apeclt:v:15:y:2008:i:15:p:1231-1235 DOI: 10.1080/13504850601018098
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    1. Toda, Hiro Y & Phillips, Peter C B, 1993. "Vector Autoregressions and Causality," Econometrica, Econometric Society, vol. 61(6), pages 1367-1393, November.
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    5. Karfakis, Costas J & Moschos, Demetrios M, 1990. "Interest Rate Linkages within the European Monetary System: A Time Series Analysis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 22(3), pages 389-394, August.
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    7. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    8. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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    Citations

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    Cited by:

    1. Eiji Yamamura, 2011. "How Do Neighbors Influence Investment in Social Capital? Homeownership and Length of Residence," International Advances in Economic Research, Springer;International Atlantic Economic Society, pages 451-464.
    2. 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.
    3. Eiji Yamamura, 2011. "Differences in the effect of social capital on health status between workers and non-workers," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(4), pages 385-400, December.
    4. Eiji Yamamura, 2011. "Homeownership and investment for social capital in Japan: Dynamic Panel approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2250-2259.
    5. Eiji Yamamura & Yukichi Mano, 2012. "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," International Advances in Economic Research, Springer;International Atlantic Economic Society, pages 409-416.
    6. Yamamura, Eiji, 2009. "What Discourages Participation in the Lay Judge System (Saiban’in Seido) of Japan? Interaction between the Secrecy Requirement and Social Networks," MPRA Paper 17197, University Library of Munich, Germany.
    7. Yamamura, Eiji, 2011. "Comparison of the effects of homeownership by individuals and their neighbors on social capital formation: Evidence from Japanese General Social Surveys," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 637-644.
    8. Eiji Yamamura, 2012. "Effect of Linguistic Heterogeneity on Technology Transfer: An Economic Study of FIFA Football Rankings," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 85-99.
    9. Eiji Yamamura, 2012. "Effect of Linguistic Heterogeneity on Technology Transfer: An Economic Study of FIFA Football Rankings," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 85-99.
    10. repec:kap:iaecre:v:18:y:2012:i:4:p:409-416 is not listed on IDEAS
    11. Eiji Yamamura, 2010. "The different impacts of socio-economic factors on suicide between males and females," Applied Economics Letters, Taylor & Francis Journals, vol. 17(10), pages 1009-1012.
    12. repec:kap:iaecre:v:17:y:2011:i:4:p:451-464 is not listed on IDEAS
    13. 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.

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