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on Information and Communication Technologies |
| By: | Gabriel Ahlfeldt (London School of Economics); Pantelis Koutroumpis (Imperial College London); Tommaso Valletti (Imperial College London, University of Rome “Tor Vergata” & CEPR) |
| Abstract: | This paper shows that having access to a fast Internet connection is an important determinant of capitalization effects in property markets. We combine microdata on property prices in England between 1995 and 2010 with local availability of Internet broadband connections. Rich variation in Internet speed over space and time allows us to estimate the causal effect of broadband speed on property prices. We find a significantly positive effect, but diminishing returns to speed. Our results imply that an upgrade from narrowband to a high-speed first-generation broadband connection (offering Internet speed up to 8 Mbit/s) could increase the price of an average property by as much as 2.8%. A further increase to a faster connection (offering speeds up to 24 Mbit/s) leads to an incremental price effect of an additional 1%. We decompose this effect by income and urbanization, finding considerable heterogeneity. These estimates are used to evaluate proposed plans to deliver fast broadband universally. We find that increasing speed and connecting unserved households passes a cost-benefit test in urban and some suburban areas, while the case for universal delivery in rural areas is not as strong. |
| Keywords: | Internet, property prices, capitalization, digital speed, universal access to broadband |
| JEL: | L1 H4 R2 |
| Date: | 2014–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:328&r=ict |
| By: | Lukasz GRZYBOWSKI; Frank VERBOVEN |
| Abstract: | We study substitution from fixed-line to mobile voice access, and the role of various complementarities that may influence this process. We use rich survey data on 160,363 households from 27 EU countries during 2005-2012. We estimate a discrete choice model where households may choose one or both technologies, possibly in combination with internet access. We obtain the following main findings. First, there is significant fixed-to mobile substitution, especially in recent years: without mobile telephony, fixed-line penetration would have been 14% higher in 2012. But there is substantial heterogeneity across households and EU regions, with a stronger substitution in Central and Eastern European countries. Second, the decline in fixed telephony has been slowed down because of a significant complementarity between fixed-line and mobile connections offered by the fixed-line incumbent operator. This gives the incumbent a possibility to maintain to some extent its position in the fixed-line market, and to leverage it into the mobile market. Third, the decline in fixed telephony has been slowed down because of the complementarity with broadband internet: the introduction of DSL avoided an additional decline in fixed-line penetration of almost 9% in 2012. The emergence of fixed broadband has thus been the main source through which incumbents maintain their strong position in the fixed-line network. |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces14.12&r=ict |
| By: | Fairlie, Robert |
| Abstract: | There is no clear theoretical prediction regarding whether home computers are an important input in the educational production function. To investigate the hypothesis that access to a home computer affects educational outcomes, we conduct the first-ever field experiment involving the provision of free computers to students for home use. Financial aid students attending a large community college in Northern California were randomly selected to receive free computers and were followed for two years. Although estimates for a few measures are imprecise and cannot rule out zero effects, we find some evidence that the treatment group achieved better educational outcomes than the control group. The estimated effects, however, are not large. We also provide some evidence that students initially living farther from campus benefit more from the free computers than students living closer to campus. Home computers appear to improve students’ computer skills and may increase the use of computers at non-traditional times. The estimated effects of home computers on educational outcomes from the experiment are smaller than the positive estimates reported in previous studies. Using matched CPS data, we find estimates of educational effects that are considerably larger than the experimental estimates. |
| Keywords: | Education, Social and Behavioral Sciences, computers, technology, education, ICT, community college |
| Date: | 2014–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:ucscec:qt3sm3c0wp&r=ict |