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Demand for Internet Access and Use in Spain

Author

Listed:
  • Leonel Cerno

    (Universidad Europea de Madrid)

  • Teodosio Pérez Amaral

    (Universidad Complutense de Madrid, Dpto. de Economía Cuantica)

Abstract

The goal of this paper is to analyze a new phenomenon: Internet demand in Spain. To do so, we use a new high quality data set and advanced econometric techniques for estimating Internet demand functions, incorporating the socio-demographic characteristics of the individuals. We begin with a graphic analysis of the data, searching for relationships between the different characteristics. Then we specify and estimate two econometric models, one for broadband access at home and another for Internet use intensity. We also find that 25.2% of the Spanish population accesses the Internet at home, but less than half uses broadband connection. This demand is positively related to income and other technological attributes and negatively related to socio-demographic attributes such as habitat and age. Our results are compatible with previous literature for other countries, although there is a important difference: broadband Internet connections are still considered as a luxury good in Spain.

Suggested Citation

  • Leonel Cerno & Teodosio Pérez Amaral, 2005. "Demand for Internet Access and Use in Spain," Documentos de Trabajo del ICAE 0506, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    • Handle: RePEc:ucm:doicae:0506
    as

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    File URL: https://eprints.ucm.es/id/eprint/7897/1/0506.pdf
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    References listed on IDEAS

    as
    1. Amaral, Teodosio Perez & Gonzalez, Francisco Alvarez & Jimenez, Bernardo Moreno, 1995. "Business telephone traffic demand in Spain: 1980-1991, an econometric approach," Information Economics and Policy, Elsevier, vol. 7(2), pages 115-134, June.
    2. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
    3. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Duffy-Deno, Kevin T., 2001. "Demand for additional telephone lines: an empirical note," Information Economics and Policy, Elsevier, vol. 13(3), pages 283-299, September.
    6. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    7. Madden, Gary & Savage, Scott & Simpson, Michael, 1996. "Information Inequality and Broadband Network Access: An Analysis of Australian Household Data," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(4), pages 1049-1066.
    8. Goodman, Allen C. & Kawai, Masahiro, 1982. "Permanent income, hedonic prices, and demand for housing: New evidence," Journal of Urban Economics, Elsevier, vol. 12(2), pages 214-237, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Broadband; Internet Access; Internet Use; Selection Bias Correction; Multinomial Logit Models; marginal effects; elasticities.;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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