Decomposing Productivity Growth in the U.S. Computer Industry

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Decomposing Productivity Growth in the U.S. Computer Industry

Author Info

Chun, H.
Nadiri, M.I.

Additional information is available for the following registered author(s):

Hyunbae Chun

Abstract

In this paper, we examine the sources of the productivity growth in the U.S. computer industry from 1978 to 1999. We estimate a joint production model of output quantity and quality that distinguishes two types of technological changes: process and product innovations. Based on the estimation results, we decompose total factor productivity (TFP) growth rate into the contributions of process and product innovations and scale economies. The results show that product innovation associated with better quality accounts for about 30 percent of the TFP growth in the computer industry. Furthermore, we find that the TFP acceleration in the computer industry in the late 1990s is mainly derived from a rapid increase in product innovation.

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Paper provided by C.V. Starr Center for Applied Economics, New York University in its series Working Papers with number 02-04.

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Length: 37 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:cvs:starer:02-04

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Other versions of this item:

Article
- Hyunbae Chun & M. Ishaq Nadiri, 2008. "Decomposing Productivity Growth in the U.S. Computer Industry," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 174-180, November. [Downloadable!] (restricted)
Paper
- Hyunbae Chun & M. Ishaq Nadiri, 2002. "Decomposing Productivity Growth in the U.S. Computer Industry," NBER Working Papers 9267, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

This paper has been announced in the following NEP Reports:

NEP-ALL-2003-11-30 (All new papers)
NEP-EFF-2004-06-02 (Efficiency & Productivity)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Mirko Draca & Raffaella Sadun & John Van Reenen, 2006. "Productivity and ICT: A Review of the Evidence," CEP Discussion Papers dp0749, Centre for Economic Performance, LSE. [Downloadable!]
Hyunbae Chun & Jung-Wook Kim & Jason Lee & Randall Morck, 2004. "Patterns of Comovement: The Role of Information Technology in the U.S. Economy," NBER Working Papers 10937, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)

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