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Computers, Productivity, and Input Substitution

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  • Stiroh, Kevin J

Abstract

This paper examines the relationship between computers and economic growth using U.S. sectoral data from 1947 to 1991. The computer-producing sector shows strong multifactor productivity growth that reflects the fundamental technological progress behind the computer revolution. Although aggregate multifactor productivity remains low, the computer-producing sector made a substantial contribution to its modest revival in the 1980s. In sharp contrast, computer-using sectors show little multifactor productivity growth since 1973. For these sectors, the computer revolution is largely a story of traditional input substitution, investment, and rapid capital accumulation with little evidence that computer investment affects multifactor productivity. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Stiroh, Kevin J, 1998. "Computers, Productivity, and Input Substitution," Economic Inquiry, Western Economic Association International, vol. 36(2), pages 175-191, April.
    • Handle: RePEc:oup:ecinqu:v:36:y:1998:i:2:p:175-91
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