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Information technology and economic performance in U.S industries

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  • Elena Ketteni
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    Abstract

    We study the relationship between information technology (IT) and economic performance, to explore whether IT-capital promotes productivity growth. We use a data set similar to that of previous researchers, but employ non-parametric estimation techniques in order to directly estimate the output elasticities of IT for each industry and time period. We find that IT has a positive effect on productivity, which varies among industries and time. Moreover, adjustment costs are important when identifying this effect. Finally, IT-capital growth appears to be raising income in all industries used in our sample, even those that experienced output reduction.

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    Bibliographic Info

    Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

    Volume (Year): 42 (2009)
    Issue (Month): 3 (August)
    Pages: 844-865

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    Handle: RePEc:cje:issued:v:42:y:2009:i:3:p:844-865

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    Cited by:
    1. Elena Ketteni & Theofanis Mamuneas & Panos Pashardes, 2013. "ICT and Energy Use: Patterns of Substitutability and Complementarity in Production," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 63-86, June.
    2. Azomahou, Theophile & Diene, Mbaye, 2012. "Income polarization and innovation: Evidence from African economies," MERIT Working Papers 048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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