It's Not What You Make, It's How You Use IT: Measuring the Welfare Benefits of the IT Revolution Across Countries
AbstractThis Paper analyses the welfare benefits from falling relative prices of IT (Information Technology) goods across a wide range of countries. Using two separate methodologies and datasets, we find that welfare benefits mainly accrue to users of IT, not their producers, because of falling relative prices. This is important, as IT production and use are highly differentiated across countries, and implies that earlier work on how IT production affects real GDP, while useful in calibrating the overall benefits of the IT revolution, are a less valuable way of assessing the distribution of benefits.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3555.
Date of creation: Sep 2002
Date of revision:
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Other versions of this item:
- Tamim Bayoumi & Markus Haacker, 2002. "Its Not What You Make, Its How You Use IT: Measuring the Welfare Benefits of the IT Revolution Across Countries," CEP Discussion Papers dp0548, Centre for Economic Performance, LSE.
- Tamim Bayoumi & Markus Haacker, 2002. "It's Not What You Make, It's How You Use IT: Measuring the Welfare Benefits of the IT Revolution Across Countries," IMF Working Papers 02/117, International Monetary Fund.
- D60 - Microeconomics - - Welfare Economics - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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