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Measuring the Spillovers from Technical Advance: Mainframe Computers inFinancial Services

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Bresnahan, Timothy F

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Abstract

Measuring the social gains from recent technological advances is difficult because there are no output indexes from some important adopters. Measurement methods that infer the willingness-to-pay of theadopting industries from the derived demand curve for a new technologyovercome this difficulty. The derived demand for high-speed computersfor use in banks, finance, and insurance is shown to imply a very largesocial gain to computerization that is not captured by computer manufacturers. Copyright 1986 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 76 (1986)
Issue (Month): 4 (September)
Pages: 742-55
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Handle: RePEc:aea:aecrev:v:76:y:1986:i:4:p:742-55

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  5. Austin, David & Macauley, Molly, 1998. "A Quality-Adjusted Cost Index for Estimating Future Consumer Surplus from Innovation," Discussion Papers dp-98-45, Resources For the Future. [Downloadable!]
  6. Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society. [Downloadable!]
  7. Fred V. Carstensen & William F. Lott & Stan McMillen, 2003. "The Economic Impact of Connecticut's Information Technology Industry," CCEA Studies 2003-02, University of Connecticut, Connecticut Center for Economic Analysis. [Downloadable!]
  8. Timothy F. Bresnahan, 1997. "Computerization and Wage Dispersion: An Analytical Reinterpretation," Working Papers 97031, Stanford University, Department of Economics. [Downloadable!]
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  10. Shane M. Greenstein & Pablo T. Spiller, 1996. "Estimating the Welfare Effects of Digital Infrastructure," NBER Working Papers 5770, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Manuel Trajtenberg, 1987. "Patents, Citations and Innovations: Tracing the Links," NBER Working Papers 2457, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Timothy F. Bresnahan & Shane Greenstein, 1994. "The Competitive Crash in Large-Scale Commercial Computing," NBER Working Papers 4901, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Raa, T. ten & Wolff, E.N., 2000. "Engines of growth in the U.S. economy," Discussion Paper 77, Tilburg University, Center for Economic Research. [Downloadable!]
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  18. Argandoña, Antonio, 2001. "Nueva economía y el crecimiento económico, La," IESE Research Papers D/437, IESE Business School. [Downloadable!]
  19. Jacob, J. & Szirmai, A., 2006. "International Trade and Knowledge Spillovers: The Case of Indonesian Manufacturing," ECIS Working Papers 06.01, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
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  21. Brynjolfsson, Erik & Smith, Michael D. & Yu, (Jeffrey) Hu, 2003. "Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers," Working papers 4305-03, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
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