Demand for internet access and use in Spain

Abstract

The aim of this paper is to analyse 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 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 find that 25.2% of the Spanish population accesses the internet at home, but less than half uses broadband connections. 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 an important difference: broadband internet connections are still considered as a luxury good in Spain.