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Computer Investment, Computer Networks and Productivity

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  • 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;

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References

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  1. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
  2. Nathalie Greenana & Jacques Mairesse, 2000. "Computers And Productivity In France: Some Evidence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(3), pages 275-315.
  3. Randy A. Becker & John Haltiwanger, 2006. "Micro and Macro Data Integration: The Case of Capital," NBER Chapters, in: A New Architecture for the U.S. National Accounts, pages 541-610 National Bureau of Economic Research, Inc.
  4. 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).
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  7. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, Elsevier, vol. 65(1), pages 83-108, January.
  8. Kazuyuki Motohashi, 2004. "Firm level analysis of information network use and productivity in Japan," Hi-Stat Discussion Paper Series, Institute of Economic Research, Hitotsubashi University d03-14, Institute of Economic Research, Hitotsubashi University.
  9. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(1), pages 253-90, February.
  10. 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.
  11. Z, Griliches & Jacques Mairesse, 1997. "Production Functions : The Search for Identification," Working Papers, Centre de Recherche en Economie et Statistique 97-30, Centre de Recherche en Economie et Statistique.
  12. Kevin M Stolarick, 1999. "Are Some Firms Better at IT? Differing Relationships between Productivity and IT Spending," Working Papers, Center for Economic Studies, U.S. Census Bureau 99-13, Center for Economic Studies, U.S. Census Bureau.
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  14. Erik Brynjolfsson & Lorin M. Hitt, 2003. "Computing Productivity: Firm-Level Evidence," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 793-808, November.
  15. 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.
  16. Kevin M Stolarick, 1999. "IT Spending and Firm Productivity: Additional Evidence from the Manufacturing Sector," Working Papers, Center for Economic Studies, U.S. Census Bureau 99-10, Center for Economic Studies, U.S. Census Bureau.
  17. 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, MIT Press, vol. 109(2), pages 367-97, May.
  18. Mark E Doms, 1992. "Estimating Capital Efficiency Schedules Within Production Functions," Working Papers, Center for Economic Studies, U.S. Census Bureau 92-4, Center for Economic Studies, U.S. Census Bureau.
  19. 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.
  20. Sabourin, David & Baldwin, John R., 2001. "Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 2001174e, Statistics Canada, Analytical Studies Branch.
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Citations

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

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