Disentangling income and price effects in the demand for time online

Jorge González Chapela

MPRA Paper from University Library of Munich, Germany

Abstract: The large negative impact of income on time spent online has been attributed to a negative own-price effect created by variation in the opportunity cost of time across internet users. Nonetheless, the coefficient on income could also be capturing a negative income effect: High-income users could reduce time spent online to consume, for example, leisure activities of higher quality. This paper estimates a demand function for time online using a time-use survey containing information on household income and individual labor earnings. In accordance with the negative income effect hypothesis, income still exerts a large negative impact after earnings are controlled for, whereas the response to earnings is negative only in certain ranges of the earnings distribution.

Keywords: Internet usage; Shadow value of time; Spanish Time Use Survey; Type II Tobit model. (search for similar items in EconPapers)
JEL-codes: J22 L86 (search for similar items in EconPapers)
Date: 2014-07-14
New Economics Papers: this item is included in nep-ict
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Related works:
Journal Article: Disentangling income and price effects in the demand for time online (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57302

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