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Timing and Determinants of Local Residential Broadband Adoption: Evidence from Ireland

  • Lyons, Seán

This 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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Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP361.

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Date of creation: Nov 2010
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Handle: RePEc:esr:wpaper:wp361
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  1. Victor Glass & Stela Stefanova, 2010. "An empirical study of broadband diffusion in rural America," Journal of Regulatory Economics, Springer, vol. 38(1), pages 70-85, August.
  2. Seán Lyons & Michael Savage, 2013. "Choice, price and service characteristics in the Irish broadband market," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 3(1), pages 1-21.
  3. Kuhn, Peter & Skuterud, Mikal Skuterud, 2002. "Internet Job Search and Unemployment Durations," University of California at Santa Barbara, Economics Working Paper Series qt8583s24x, Department of Economics, UC Santa Barbara.
  4. Prieger, James E. & Hu, Wei-Min, 2008. "The broadband digital divide and the nexus of race, competition, and quality," Information Economics and Policy, Elsevier, vol. 20(2), pages 150-167, June.
  5. Brian E. Whitacre & Bradford F. Mills, 2007. "Infrastructure and the Rural—urban Divide in High-speed Residential Internet Access," International Regional Science Review, , vol. 30(3), pages 249-273, July.
  6. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
  7. Seán Lyons & Karen Mayor & Richard S.J. Tol, 2008. "Environmental Accounts for the Republic of Ireland: 1990-2005," Papers WP223, Economic and Social Research Institute (ESRI).
  8. Leslie E. Papke & Jeffrey M. Wooldridge, 1993. "Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates," NBER Technical Working Papers 0147, National Bureau of Economic Research, Inc.
  9. Savage, Scott J. & Waldman, Donald, 2005. "Broadband Internet access, awareness, and use: Analysis of United States household data," Telecommunications Policy, Elsevier, vol. 29(8), pages 615-633, September.
  10. James E. Prieger, 2003. "The Supply Side of the Digital Divide: Is There Equal Availability in the Broadband Internet Access Market?," Economic Inquiry, Western Economic Association International, vol. 41(2), pages 346-363, April.
  11. Savage, Scott James & Waldman, Donald M., 2009. "Ability, location and household demand for Internet bandwidth," International Journal of Industrial Organization, Elsevier, vol. 27(2), pages 166-174, March.
  12. Billon, Margarita & Marco, Rocio & Lera-Lopez, Fernando, 0. "Disparities in ICT adoption: A multidimensional approach to study the cross-country digital divide," Telecommunications Policy, Elsevier, vol. 33(10-11), pages 596-610, November.
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