Accounting for Growth from A to Z: Review Article on Information Technology and the American Growth Resurgence
The author reviews the book Information Technology and the American Growth Resurgence by Dale Jorgenson, Mun Ho, and Kevin Stiroh, which provides a detailed analysis of the remarkable rebound in productivity and output growth in the last decade. He notes that the book can be considered a “Users’ Guide” to growth accounting and is highly recommended in this regard. The author reviews in an even-handed manner the critiques that have been put forward of the growth accounting methodology presented by Jorgenson et al. His bottom line is that while many of the critiques make valuable points, there is currently no alternative methodology to growth accounting that offers such a comprehensive framework for assessing the sources of economic growth. He also reviews the story put forward by Jorgenson et al. where in the mid-1990s the constant-quality prices of semiconductors fell substantially, leading to rapid declines in the price of Information Technology (IT) capital goods. Firms responded by substituting capital purchases toward IT capital, resulting in a surge in IT capital deepening and labour productivity growth. One limitation of the book is that it provides no analysis of the post-2000 US productivity growth acceleration, which has taken place in a period when rapid IT capital deepening was not occurring.
Volume (Year): 12 (2006)
Issue (Month): (Spring)
|Contact details of provider:|| Postal: 151 Slater Street, Suite 710, Ottawa, ON K1P 5H3|
Web page: http://www.csls.ca/
More information through EDIRC
|Order Information:|| Web: http://www.csls.ca Email: |
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.:
- Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997.
"Long-Run Implications of Investment-Specific Technological Change,"
American Economic Review,
American Economic Association, vol. 87(3), pages 342-362, June.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1995. "Long-Run Implications of Investment-Specific Technological Change," UWO Department of Economics Working Papers 9510, University of Western Ontario, Department of Economics.
- Greenwood, J. & Hercowitz, Z. & Krusell, P., 1996. "Long-Run Implications of Investment-Specific Technological Change," RCER Working Papers 420, University of Rochester - Center for Economic Research (RCER).
When requesting a correction, please mention this item's handle: RePEc:sls:ipmsls:v:12:y:2006:7. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CSLS)
If references are entirely missing, you can add them using this form.