The impact of ICT on the Italian productivity dynamics
AbstractThe last twenty years have seen a marked slowdown of the Italian productivity growth rate. The literature has underlined the role of international factors, such as globalization and adoption of the euro. In this paper we emphasize the role and dynamics of capital accumulation investigating the impact of the introduction of information technology on capital and production in the Italian economy and the extent to which that is being affected by skills in the labour force. The model is specified and estimated as continuous-time general disequilibrium framework. It presents original features: it analyzes the effects of the introduction of the ICT technology on the Italian economy not in a partial equilibrium context of a single market but from a macro point of view where input markets interact; it does not assume that these markets instantaneously clear but rather that there are imperfections and frictions; it does not impose the condition that the economy necessarily converges to a steady state. The model behaves quite well in replicating the dynamics of the Italian economy. It also shows however that there remains some structural inefficiency that worsened in recent years. In fact, our main finding shows that there exists a permanent gap between â€œoptimalâ€ and actual output which increased in the latter part of the sample period. While a fraction of this gap can be attributed to unavoidable (market and non market) adjustment costs some is associated to efficiency losses.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Rome La Sapienza, Department of Public Economics in its series Working Papers with number 149.
Date of creation: Nov 2011
Date of revision:
Technological adoption; Disequilibrium models; Continuous-time econometrics.;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-EFF-2012-02-27 (Efficiency & Productivity)
- NEP-ICT-2012-02-27 (Information & Communication Technologies)
- NEP-MAC-2012-02-27 (Macroeconomics)
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.:
- Daron Acemoglu, 2001.
"Directed Technical Change,"
NBER Working Papers
8287, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 2009. "The economics of growth," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Paul Beaudry & Mark Doms & Ethan Lewis, 2006.
"Endogenous skill bias in technology adoption: city-level evidence from the IT revolution,"
Working Paper Series
2006-24, Federal Reserve Bank of San Francisco.
- Paul Beaudry & Mark Doms & Ethan Lewis, 2006. "Endogenous Skill Bias in Technology Adoption: City-Level Evidence from the IT Revolution," NBER Working Papers 12521, National Bureau of Economic Research, Inc.
- Diego Comin & Bart Hobijn, 2003.
"Cross-country technology adoption: making the theories face the facts,"
169, Federal Reserve Bank of New York.
- Comin, D. & Hobijn, B., 2004. "Cross-country technology adoption: making the theories face the facts," Journal of Monetary Economics, Elsevier, vol. 51(1), pages 39-83, January.
- Comin, D. & Hobijn, B., 2003. "Cross-Country Technology Adoption: Making the Theories Face the Facts," Working Papers 03-04, C.V. Starr Center for Applied Economics, New York University.
- Francis J. Cronin & Elisabeth Colleran & Mark Gold, 1997. "Telecommunications, Factor Substitution And Economic Growth," Contemporary Economic Policy, Western Economic Association International, vol. 15(3), pages 21-31, 07.
- Daron Acemoglu, 2005.
"Equilibrium Bias of Technology,"
NBER Working Papers
11845, National Bureau of Economic Research, Inc.
- Wymer, C R, 1972. "Econometric Estimation of Stochastic Differential Equation Systems," Econometrica, Econometric Society, vol. 40(3), pages 565-77, May.
- Philippe Aghion & Peter Howitt, 2009.
"The Economics of Growth,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 9780262012638, June.
- Acemoglu, D. & Zilibotti, F., 1998.
660, Stockholm - International Economic Studies.
- Acemoglu, Daron & Zilibotti, Fabrizio, 1998. "Productivity Differences," Seminar Papers 660, Stockholm University, Institute for International Economic Studies.
- Acemoglu, Daron & Zilibotti, Fabrizio, 2000. "Productivity Differences," CEPR Discussion Papers 2498, C.E.P.R. Discussion Papers.
- Daron Acemoglu & Fabrizio Zilbotti, 1999. "Productivity Differences," NBER Working Papers 6879, National Bureau of Economic Research, Inc.
- Atkinson, Anthony B & Stiglitz, Joseph E, 1969. "A New View of Technological Change," Economic Journal, Royal Economic Society, vol. 79(315), pages 573-78, September.
- Francesco Caselli & Wilbur John Coleman II, 2000.
"The World Technology Frontier,"
NBER Working Papers
7904, National Bureau of Economic Research, Inc.
- Gandolfo, Giancarlo & Padoan, Pietro Carlo, 1990. "The Italian continuous time model : Theory and empirical results," Economic Modelling, Elsevier, vol. 7(2), pages 91-132, April.
- Susanto Basu & David N. Weil, 1998.
"Appropriate Technology And Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(4), pages 1025-1054, November.
- Rainer Klump & Peter McAdam & Alpo Willman, 2007. "Factor Substitution and Factor-Augmenting Technical Progress in the United States: A Normalized Supply-Side System Approach," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 183-192, February.
- Paul Beaudry & David Green, 1998. "What is Driving US and Canadian Wages: Exogenous Technical Change or Endogenous Choice of Technique?," NBER Working Papers 6853, National Bureau of Economic Research, Inc.
- Enrico Saltari & Giuseppe Travaglini, 2009. "The Productivity Slowdown Puzzle. Technological and Non-technological Shocks in the Labor Market," International Economic Journal, Korean International Economic Association, vol. 23(4), pages 483-509.
- Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, vol. 89(1), pages 78-102, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Luisa Giuriato).
If references are entirely missing, you can add them using this form.