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Computer Investment, Computer Networks and Productivity

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Author Info

  • Sang Nguyen
  • B.K. Atrostic

Abstract

Researchers in a large empirical literature find significant relationships between computers and labor productivity, but the estimated size of that relationship varies considerably. In this paper, we estimate the relationships among computers, computer networks, and plant-level productivity in U.S. manufacturing. Using new data on computer investment, we develop a sample with the best proxies for computer and total capital that the data allow us to construct. We find that computer networks and computer inputs have separate, positive, and significant relationships with U.S. manufacturing plant-level productivity. Keywords: computer input; information technology; labor productivity

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File URL: ftp://ftp2.census.gov/ces/wp/2005/CES-WP-05-01.pdf
File Function: First version, 2005
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 05-01.

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Length: 39 pages
Date of creation: Jan 2005
Date of revision:
Handle: RePEc:cen:wpaper:05-01

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Related research

Keywords: computer input; information technology; labor productivity;

This paper has been announced in the following NEP Reports:

References

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  1. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," Harvard Institute of Economic Research Working Papers 1719, Harvard - Institute of Economic Research.
  2. Kazuyuki Motohashi, 2003. "Firm level analysis of information network use and productivity in Japan," Discussion papers 03021, Research Institute of Economy, Trade and Industry (RIETI).
  3. Doms, Mark E, 1996. "Estimating Capital Efficiency Schedules within Production Functions," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 78-92, January.
  4. Nathalie Greenan & Jacques Mairesse, 1996. "Computers and Productivity in France: Some Evidence," NBER Working Papers 5836, National Bureau of Economic Research, Inc.
  5. Brynjolfsson, Erik & Hitt, Lorin M., 2004. "Computing Productivity: Firm-Level Evidence," Working papers 4210-01, Massachusetts Institute of Technology (MIT), Sloan School of Management.
  6. Kevin M Stolarick, 1999. "Are Some Firms Better at IT? Differing Relationships between Productivity and IT Spending," Working Papers 99-13, Center for Economic Studies, U.S. Census Bureau.
  7. Robert H Mcguckin & Mary L Streitwieser & Mark E Doms, 1996. "The Effect Of Technology Use On Productivity Growth," Working Papers 96-2, Center for Economic Studies, U.S. Census Bureau.
  8. Dunne, Timothy & Foster, Lucia & Haltiwanger, John C. & Troske, Kenneth, 2002. "Wage and Productivity Dispersion in U.S. Manufacturing: The Role of Computer Investment," IZA Discussion Papers 563, Institute for the Study of Labor (IZA).
  9. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
  10. Russell Cooper & John Haltiwanger & Laura Power, 1995. "Machine Replacement and the Business Cycle: Lumps and Bumps," Papers 0062, Boston University - Industry Studies Programme.
  11. Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series 2000-19, Board of Governors of the Federal Reserve System (U.S.).
  12. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Growth of U.S. Industries and Investments in Information Technology and Higher Education," NBER Chapters, in: Measuring Capital in the New Economy, pages 403-478 National Bureau of Economic Research, Inc.
  13. John R. Baldwin & David Sabourin, 2002. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," OECD Science, Technology and Industry Working Papers 2002/1, OECD Publishing.
  14. Randy Becker & John Haltiwanger & Ron Jarmin & Shawn Klimek & Dan Wilson, 2005. "Micro and Macro Data Integration: The Case of Capital," Working Papers 05-02, Center for Economic Studies, U.S. Census Bureau.
  15. Kevin M Stolarick, 1999. "IT Spending and Firm Productivity: Additional Evidence from the Manufacturing Sector," Working Papers 99-10, Center for Economic Studies, U.S. Census Bureau.
  16. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  17. Zvi Griliches, 1998. "Productivity, R&D, and the Data Constraint," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 347-374 National Bureau of Economic Research, Inc.
  18. Jacques Mairesse & Nathalie Greenan & Agnes Topiol-Bensaid, 2001. "Information Technology and Research and Development Impacts on Productivity and Skills: Looking for Correlations on French Firm Level Data," NBER Working Papers 8075, National Bureau of Economic Research, Inc.
  19. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  20. Timothy F. Bresnahan & Manuel Trajtenberg, 1995. "General Purpose Technologies "Engines of Growth?"," NBER Working Papers 4148, National Bureau of Economic Research, Inc.
  21. Laura Power, 1998. "The Missing Link: Technology, Investment, And Productivity," The Review of Economics and Statistics, MIT Press, vol. 80(2), pages 300-313, May.
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Citations

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Cited by:
  1. B. Atrostic, 2008. "Measuring U.S. innovative activity: business data at the U.S. Census Bureau," The Journal of Technology Transfer, Springer, vol. 33(2), pages 153-171, April.
  2. Kevin Girdharry & Elena Simonova & Rock Lefebvre, 2012. "Investment in Machinery and Equipment is Essential to Canada's Future," Working Papers 120401, Certified General Accountants Association of Canada.
  3. Richard Dion & Robert Fay, 2008. "Understanding Productivity: A Review of Recent Technical Research," Discussion Papers 08-3, Bank of Canada.
  4. Sang Nguyen & B.K. Atrostic, 2006. "How Businesses Use Information Technology: Insights for Measuring Technology and Productivity," Working Papers 06-15, Center for Economic Studies, U.S. Census Bureau.

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