How income impacts adoption of smartphones in Africa

How income impacts adoption of smartphones in Africa, joint with Toker Doganoglu and Lukasz Grzybowski.

Working paper

In this paper, we use biannual panel data of subscribers to mobile telecommunications services in an African country to analyze how the price of smartphones impacts the adoption decision of individuals belonging to different income groups. We adopt a simple dynamic model of technology adoption decision proposed by De Groote and Verboven (2019). We account for income heterogeneity and estimate price elasticities for various groups of individuals. We then use our estimates to conduct counterfactual simulations and comment on what would be the most effective policies to encourage the adoption of smartphones and mobile internet, in particular for disadvantaged individuals.