The dynamics of home computer ownership in Greece

This paper investigates the ownership dynamics of home computers in Greece. Panel data at the household level for the period 1997-2001 and a dynamic random effects probit model are used for estimation purposes. We find that the probability of ownership is influenced by observed household characteristics (e.g., age, education, family composition, income and familiarity with technologically advanced durables), while genuine state dependence and unobserved heterogeneity constitute major sources of observed serial persistence. Furthermore, network effects seem to be at work. The results imply that the bridging of the digital divide between Greece and its E.U. partners is expected to follow a gradual long-term course.