Working Paper: NBER ID: w12182
Authors: Shane Greenstein; Jeff Prince
Abstract: This paper analyses the rapid diffusion of the Internet across the United States over the past decade for both households and firms. We put the Internet's diffusion into the context of economic diffusion theory where we consider costs and benefits on the demand and supply side. We also discuss several pictures of the Internet's physical presence using some of the current main techniques for Internet measurement. We highlight different economic perspectives and explanations for the digital divide, that is, unequal availability and use of the Internet.
Keywords: internet diffusion; digital divide; economic diffusion theory; general purpose technology
JEL Codes: O3; L8; R0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| internet adoption (L86) | diffusion process (O33) |
| supply-side factors (J20) | diffusion of the internet (L86) |
| demand-side factors (J23) | diffusion of the internet (L86) |
| adoption of PCs (L63) | internet adoption (L86) |
| socioeconomic factors (P23) | internet adoption (L86) |
| lower income levels (I32) | reduced adoption rates (J13) |
| lower education levels (I24) | reduced adoption rates (J13) |
| internet usage (L96) | household income (D19) |
| internet usage (L96) | employment status (J63) |
| internet usage (L96) | educational attainment (I21) |