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Computers, Productivity, and Input Substitution

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  • Stiroh, Kevin J

Abstract

This paper examines the relationship between computers and economic growth using U.S. sectoral data from 1947 to 1991. The computer-producing sector shows strong multifactor productivity growth that reflects the fundamental technological progress behind the computer revolution. Although aggregate multifactor productivity remains low, the computer-producing sector made a substantial contribution to its modest revival in the 1980s. In sharp contrast, computer-using sectors show little multifactor productivity growth since 1973. For these sectors, the computer revolution is largely a story of traditional input substitution, investment, and rapid capital accumulation with little evidence that computer investment affects multifactor productivity. Copyright 1998 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 36 (1998)
Issue (Month): 2 (April)
Pages: 175-91

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Handle: RePEc:oup:ecinqu:v:36:y:1998:i:2:p:175-91

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