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Computer Use and Productivity Growth in US Federal Government Agencies, 1987-92

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  • Lehr, William
  • Lichtenberg, Frank R

Abstract

The authors examine the impact of information technology on productivity in the public sector econometrically using data from the BLS Federal Productivity Measurement Program and from Computer Intelligence Infocorp and by interviewing some government officials. They estimate a production function for government services that includes information technology capital as an input and find a strong positive relationship across federal agencies between productivity growth and computer-intensity growth during the period 1987-92, controlling for growth in compensation and other outlays per employee and in the number of employees. The authors' estimates are consistent with the hypothesis that there are 'excess returns' to information technology capital. Copyright 1998 by Blackwell Publishing Ltd

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  • Lehr, William & Lichtenberg, Frank R, 1998. "Computer Use and Productivity Growth in US Federal Government Agencies, 1987-92," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 257-279, June.
  • Handle: RePEc:bla:jindec:v:46:y:1998:i:2:p:257-79
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    Cited by:

    1. Carrera, Leandro N. & Dunleavy, Patrick & Bastow, Simon, 2009. "Understanding productivity trends in UK tax collection," LSE Research Online Documents on Economics 25532, London School of Economics and Political Science, LSE Library.
    2. Weaver, Robert D. & Curtiss, Jarmila & Brümmer, Bernhard, 2005. "Technical Efficiency Effects of Technological Change: Another Perspective on GM Crops," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24528, European Association of Agricultural Economists.
    3. ten Raa, Thijs & Wolff, Edward N., 2000. "Engines of growth in the US economy," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 473-489, December.
    4. Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
    5. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    6. Liu, Ting-Kun & Chen, Jong-Rong & Huang, Cliff J. & Yang, Chih-Hai, 2014. "Revisiting the productivity paradox: A semiparametric smooth coefficient approach based on evidence from Taiwan," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 300-308.
    7. Marianne Bitler, 2001. "Small business and computers: adoption and performance," Working Paper Series 2001-15, Federal Reserve Bank of San Francisco.
    8. Radhakrishnan, Abirami & Zu, Xingxing & Grover, Varun, 2008. "A process-oriented perspective on differential business value creation by information technology: An empirical investigation," Omega, Elsevier, vol. 36(6), pages 1105-1125, December.
    9. repec:pal:jorsoc:v:54:y:2003:i:10:d:10.1057_palgrave.jors.2601609 is not listed on IDEAS
    10. Badran, M.F., 2007. "What determines broadband uptake in emerging countries? An empirical study," MPRA Paper 37529, University Library of Munich, Germany.

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