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

  • Lyons, Seán

This article examines the time path of broadband adoption for households in areas that are offered broadband service for the first time and the socioeconomic characteristics of broadband users generally. Using cross-sectional data on broadband take-up and socioeconomic characteristics of small areas in Ireland, linked to GIS data on ADSL availability over time, I find that local penetration growth rates are elevated immediately after service is offered. Local growth rates then decline towards the national average, reaching it after about 3.5 years. The article 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.

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Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP432.

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Date of creation: Mar 2012
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Handle: RePEc:esr:wpaper:wp432
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  1. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
  2. 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).
  3. Lyons, Seán & Savage, Michael, 2012. "Choice, Price and Service Characteristics in the Irish Broadband Market," Papers WP435, Economic and Social Research Institute (ESRI).
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  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. 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.
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