Feng, Yao (2011): Local spillovers and learning from neighbors: Evidence from durable adoptions in rural China.
Download (119kB) | Preview
Using the 1999 durable consumption survey data in rural China, we examine the importance of local spillovers in the diffusion of three major durable goods, i.e., color television set, washing machine, and refrigerator. We find that, with control for many family characteristics, a household is more likely to buy its first durable good in villages where a large share of households already own one. Further evidence suggests that theses patterns are unlikely to be explained by unobserved local characteristics. When examined in more detail, the extent of local spillovers appears to be negatively related to a household’s knowledge about the product, and positively related to its education level. Both are consistent with the hypothesis that learning from neighbors plays an important role of these spillovers.
|Item Type:||MPRA Paper|
|Original Title:||Local spillovers and learning from neighbors: Evidence from durable adoptions in rural China|
|Keywords:||Local spillovers, Social learning, Durable adoptions|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L68 - Appliances ; Furniture ; Other Consumer Durables
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes
|Depositing User:||Zhao Rong|
|Date Deposited:||07. Oct 2011 16:20|
|Last Modified:||01. Mar 2013 01:58|
Abdulai, A., & Huffman, W. (2005). The diffusion of new agricultural technologies: The case of crossbred-cow technology in Tanzania. American Journal of Agricultural Economics, 87, 645-659.
Bandiera, O., & Rasul, I. (2006). Social networks and technology adoption in northern Mozambique. Economic Journal, 116, 869–902.
Becker, G., & Murphy, K., Social Economics: Market Behavior in a Social Environment, Harvard University Press, Cambridge, 2000.
Berndt, E., Pindyck, R., & Azoulay, P. (2003). Consumption externalities and diffusion in pharmaceutical markets: Antiulcer drugs. Journal of Industrial Economics, 51, 243-270.
Bertrand M., Luttmer, E., & Mullainathan, S. (2000). Network effects and welfare cultures. Quarterly Journal of Economics, 115, 1019-1055.
Case, A.C., & Katz, L.F. (1991). The company you keep: The effects of family and neighborhood on disadvantaged youths. NBER Working Paper No. 3705.
Church, J., & Gandal, N. (1992). Network effects, software provision, and standardization. Journal of Industrial Economics, 40, 85-103.
Conley, T., & Udry, C. (2010). Learning about a new technology: Pineapple in Ghana. American Economic Review, 100, 35-69.
Dubin, J.A., & McFadden, D. (1984). An econometric analysis of residential electric appliance holdings and consumption. Econometrica, 52, 345-362.
Duflo, E., & Saez, E. (2002). Participation and investment decisions in a retirement plan: The influence of colleagues’ choices. Journal of Public Economics, 85, 121-148.
Duflo, E., Kremer, M., & Robinson, J. (2008). How high are rates of return to fertilizer? Evidence from field experiments in Kenya. American Economic Review, 98, 482-488.
Farrell, J., & Saloner, G. (1985). Standardization, compatibility, and innovation. RAND Journal of Economics, 16, 70-83.
Foster, A., & Rosenzweig, M. (1995). Learning by doing and learning from others: Human capital and technical change in agriculture. Journal of Political Economy, 103, 1176-1209.
Foster, A., & Rosenzweig, M. (1996). Technical change and human capital returns and investments: Evidence from the green revolution, American Economic Review, 86, 931-953.
Gandal, N. (1994). Hedonic price indexes for spreadsheets and an empirical test for network externalities. RAND Journal of Economics, 25, 160-170.
Goolsbee, A., & Klenow, P. (2002). Evidence on learning and network externalities in the diffusion of home computers. Journal of Law and Economics, 145, 317-343.
Griliches, Z. (1957). Hybrid corn: An exploration in the economics of technological change. Econometrica, 25, 501-522.
Heckman, J.J., & Singer, B. (1985). Social science duration analysis. In J.J. Heckman & B. Singer (Ed.), Longitudinal Analysis of Labor Market Data (pp. 39–58). Cambridge: Cambridge University Press.
Irwin, D., & Klenow, P.J. (1994). Learning-by-doing spillovers in the semiconductor industry. Journal of Political Economy, 102, 1200-1227.
Karshenas, M., & Stoneman, P. (1993). Rank, stock, order, and epidemic effects in the diffusion of new process technologies: An empirical model. RAND Journal of Economics, 24, 503-528.
Lin, J.Y. (1991). Education and innovation adoption: Evidence from hybrid rice in China. American Journal of Agricultural Economics, 73, 713-723.
Lucas, R.E. (1993). Making a miracle. Econometrica, 61, 251-272.
Manski, C.F. (1993). Identification of endogenous social effects: The reflection problem. Review of Economic Studies, 60, 531-542.
Manski, C.F. (2000). Economic analysis of social interactions. Journal of Economic Perspectives, 14, 115-136.
Munshi, K. (2004). Social learning in a heterogeneous population: Technology diffusion in the Indian green revolution. Journal of Development Economics, 73, 185-213.
Park, S. (2004). Quantitative analysis of network externalities in competing technologies: The VCR case. Review of Economics and Statistics, 86, 937-945.
Rong, Z., & Yao, Y. (2003). Public service provision and the demand for electric appliances in rural China. China Economic Review, 14, 131-141.
Saloner, G., & Shepard, A. (1995). Adoption of technologies with network effects: An empirical examination of the adoption of automated teller machines. RAND Journal of Economics, 26, 479-501.
Schultz, T.W. (1975). The value of the ability to deal with disequilibria. Journal of Economic Literature, 13, 827-846.
Skinner, J.S., & Staiger, D. (2005). Technology adoption from hybrid corn to beta blockers. NBER Working Paper No. 11251.
Thornton, R., & Thompson, P. (1999). Learning from experience and learning from others: An exploration of learning and spillovers in wartime shipbuilding. American Economic Review, 91, 1350-68.
Available Versions of this Item
- Local spillovers and learning from neighbors: Evidence from durable adoptions in rural China. (deposited 07. Oct 2011 16:20) [Currently Displayed]