Date of Award
December 2021
Document Type
Thesis
Degree Name
Master of Arts (MA)
Department
Economics
Committee Member
Thomas W. Hazlett
Committee Member
F. Andrew Hanssen
Committee Member
Patrick L. Warren
Abstract
Is the value of broadband access capitalized in house prices, and do broadband subsidies transfer wealth to targeted subscribers? First, we sample 4995 recent rural Michigan home sales, with their attributes, to calibrate a hedonic model. Our estimation relates housing values to broadband internet access availability, while limiting endogeneity. A second model estimates federal broadband subsidy’s effect on availability of 25 Mbps (download) service. Results show a premium between 10-15% in home prices for broadband availability (a potential difference of $15,000-$22,500 with median home price of $150,000), while subsidies appear to not have any significant impact.
Recommended Citation
Bond, David Michael, "Land Rents and Broadband Subsidies" (2021). All Theses. 3643.
https://open.clemson.edu/all_theses/3643