Pavlyuk, Dmitry (2011): Efficiency of broadband internet adoption in European Union member states.
Download (162Kb) | Preview
This paper is devoted to econometric analysis of broadband adoption efficiency in EU member states. Stochastic frontier models are widely used for efficiency estimation. We enhanced the stochastic frontier model by adding a spatial component into the model specification to reflect possible dependencies between neighbour countries. A maximum likelihood estimator for the model was developed. The proposed spatial autoregressive stochastic frontier model is used for estimation of broadband adoption efficiency. We confirmed a negative impact of average prices of broadband services on broadband adoption in a country and also discovered a significant negative influence of a level of population income inequality. Significant positive spatial effects also have been revealed, so higher broadband penetration rates in neighbour countries have a positive impact on broadband adoption in a given country.
|Item Type:||MPRA Paper|
|Original Title:||Efficiency of broadband internet adoption in European Union member states|
|Keywords:||spatial stochastic frontier, broadband adoption, efficiency|
|Subjects:||C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
L - Industrial Organization > L8 - Industry Studies: Services > L86 - Information and Internet Services; Computer Software
|Depositing User:||Dmitry Pavlyuk|
|Date Deposited:||18. Oct 2011 11:51|
|Last Modified:||16. Feb 2013 10:14|
Fornefeld M., Delaunay G. and Elixmann D. The Impact of Broadband on Growth and Productivity. A study on behalf of the European Commission. 2008, 124 p. Available at http://www.micus.de/59a_bb-final_en.html
Allen Consulting Group True Broadband: Exploring the Economic Impacts. 2003, 56 p. Available at http://www.citynet.nl/upload/ERN01_Final_Report_2_Broadbandproductivity_1.pdf
Gillet S.E., Lehr W.H. and Sirbu M. Measuring Broadband’s Economic Impact. Final Report. National Technical Assistance, Training, Research, and Evaluation Project #99-07-13829. 2006. 53 p. Available at http://www.eda.gov/ImageCache/EDAPublic/documents/pdfdocs2006/mitcmubbimpactreport_2epdf/v1/mitcmubbimpactreport.pdf
Ford G.S, Koutsky T.M. and Spiwak L.J. The Broadband Efficiency Index: What Really Drives Broadband Adoption across the OECD? Phoenix Center Policy Paper Series, 2008. 27 p.
Kumbhakar S. C. and Lovell C. A. K. Stochastic Frontier Analysis. Cambridge: Cambridge University Press, 2003. 333 p.
Anselin L. Spatial Econometrics: Methods and Models. Dordrecht: Kluwer Academic Publishers, 1988. 284 p.
Schmidt A.M., Moreira A.R.B., Helfand S.M. and Fonseca, T.C.O. Spatial stochastic frontier models: accounting for unobserved local determinants of inefficiency, Journal of Productivity Analysis, 31 (2), 2009, pp. 101-112.
Barrios E.B. and Lavado R.F. Spatial Stochastic Frontier Models, PIDS Discussion Paper Series, No. 2010-08, 2010, 25 p.
Affuso E. Spatial autoregressive stochastic frontier analysis: An application to an impact evaluation study, Auburn University Working Papers, 2010, 19 p. Available at http://ssrn.com/abstract=1740382
Greene W., Econometric Analysis. Prentice Hall, 7 ed., 2011, 1232 p.
Tobler W., A computer movie simulating urban growth in the Detroit region, Economic Geography, vol. 46, issue 2, pp. 234-240, 1970.
Moran P.A.P. Notes on Continuous Stochastic Phenomena, Biometrika, 37, pp. 17–23.
Arbia G. Spatial econometrics: statistical foundations and applications to regional convergence. Springer, 2006. 207 p.
Statistical Office of the European Communities (Eurostat), Statistics Database, 2011. Available: http://epp.eurostat.ec.europa.eu [Accessed: Jul. 06, 2011].
International Telecommunication Union, Measuring the Information Society 2010, Executive Summary, 2010, 12 p. Available at http://www.itu.int/ITU-D/ict/publications/idi/2010/index.html
Sandvik B. World Borders Dataset, 2010. Available at http://thematicmapping.org/downloads/world_borders.php