You're Not Paying Enough for the Internet
Paul Kedrosky cites Goolsbee and Klenow http://siepr.stanford.edu/papers/pdf/05-10.html
:You're Not Paying Enough for the Internet: From a new Stanford economics working paper:
Only about 0.2% of consumer spending in the U.S. ... went for Internet access in 2004 yet time use data indicates that people spend around 10% of their entire leisure time going online... Based on expenditure and time use data and our elasticity estimate, we calculate that consumer surplus from the Internet may be around 2% of full-income, or several thousand dollars per user.
