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The Frontier of Broadband Adoption Across the OECD: A Comparison of Performance

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  • George Ford
  • Thomas Koutsky
  • Lawrence Spiwak

Abstract

We assess the performance and efficiency of OECD countries with respect to broadband Internet subscription. Using the econometric techniques of Least Squares and Stochastic Frontier Analysis, we estimate scores indicating the efficiency with which a country converts its economic and demographic endowments into broadband subscriptions. With very few exceptions, we find that broadband subscription in OECD countries is consistent with those endowments - about two thirds of OECD countries have an efficiency rate of 90% or better. We find that economic and demographic endowments explain nearly all of the variation in broadband subscriptions (85%). This finding suggests that public policy's role for broadband adoption should be targeted at improving or mitigating the adverse effects of underlying demographic and economic conditions, such as computer ownership and education programs.

Suggested Citation

  • George Ford & Thomas Koutsky & Lawrence Spiwak, 2011. "The Frontier of Broadband Adoption Across the OECD: A Comparison of Performance," International Economic Journal, Taylor & Francis Journals, vol. 25(1), pages 111-123.
    • Handle: RePEc:taf:intecj:v:25:y:2011:i:1:p:111-123
    DOI: 10.1080/10168737.2010.487540
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Harry J. Holzer & Richard N. Block & Marcus Cheatham & Jack H. Knott, 1993. "Are Training Subsidies for Firms Effective? The Michigan Experience," ILR Review, Cornell University, ILR School, vol. 46(4), pages 625-636, July.
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    1. Liao, Chun-Hsiung & Lien, Chun-Yu, 2012. "Measuring the technology gap of APEC integrated telecommunications operators," Telecommunications Policy, Elsevier, vol. 36(10), pages 989-996.
    2. Kyriakidou, Vagia & Michalakelis, Christos & Sphicopoulos, Thomas, 2013. "Assessment of information and communications technology maturity level," Telecommunications Policy, Elsevier, vol. 37(1), pages 48-62.

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