The recent growth of the internet and changes in household-level demand for entertainment

This paper investigates to what extent the recent growth of the Internet complements or substitutes for consumption of existing entertainment goods. Using the Consumer Expenditure Survey, I find varying degrees of potential substitutability between the Internet growth and consumer expenditures across different entertainment goods. I then estimate the demand system for entertainment goods and further attempt to account for various factors. For recorded music in particular, I find robust negative effects of the Internet

• Type: Journal
• Year: 2007
• Where: IEPOL
• Authors: Seung-Hyun Hong
• Keywords: Consumer Expenditure Survey, Consumer Expenditures, IEPOL 2007, Internet