Information technology and economic performance in U.S industries
We study the relationship between information technology (IT) and economic performance, to explore whether IT-capital promotes productivity growth. We use a data set similar to that of previous researchers, but employ non-parametric estimation techniques in order to directly estimate the output elasticities of IT for each industry and time period. We find that IT has a positive effect on productivity, which varies among industries and time. Moreover, adjustment costs are important when identifying this effect. Finally, IT-capital growth appears to be raising income in all industries used in our sample, even those that experienced output reduction.
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Volume (Year): 42 (2009)
Issue (Month): 3 (August)
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