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Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking

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  • Thomas N. Hubbard

Abstract

Productivity reflects not only how efficiently inputs are transformed into outputs, but also how well information is applied to resource allocation decisions. This paper examines how information technology has affected capacity utilization in the trucking industry. Estimates for 1997 indicate that advanced on-board computers (OBCs) have increased capacity utilization among adopting trucks by 13 percent. These increases are higher than for 1992, suggesting lags in the returns to adoption, and are highly skewed across hauls. The 1997 estimates imply that OBCs have enabled 3-percent higher capacity utilization in the industry, which translates to billions of dollars of annual benefits. (JEL D24, L92, O33, O47)

Suggested Citation

  • Thomas N. Hubbard, 2003. "Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking," American Economic Review, American Economic Association, vol. 93(4), pages 1328-1353, September.
  • Handle: RePEc:aea:aecrev:v:93:y:2003:i:4:p:1328-1353
    Note: DOI: 10.1257/000282803769206322
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    References listed on IDEAS

    as
    1. David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-361, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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