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The Effects of Computer Technologies on the Canadian Economy: Evidence from New Direct Measures

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  • Michelle Alexopoulos
  • Jon Cohen

Abstract

New indicators of technical change in the field of computers based on new titles held by Canadian libraries are presented, and are used to demonstrate that a positive computer technology shock in Canada increases hours worked, output, and productivity in the short run. These measures indicate, first, that advances in the implementation of computer technology in Canada are largely influenced by innovations in the United States; and second, when compared to a United States-based indicator, that a gap emerged between United States and Canadian-held titles around the time that the productivity gap emerged between the two countries. Given that a strong, causal relationship is found to exist between the new indicators and total factor productivity, this evidence provides additional support for the hypothesis that crosss-border differences in the development and use of new computer technologies play a key role in explaining Canada’s productivity gap with the United States.

Suggested Citation

  • Michelle Alexopoulos & Jon Cohen, 2012. "The Effects of Computer Technologies on the Canadian Economy: Evidence from New Direct Measures," International Productivity Monitor, Centre for the Study of Living Standards, vol. 23, pages 17-32, Spring.
    • Handle: RePEc:sls:ipmsls:v:23:y:2012:2
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    File URL: http://www.csls.ca/ipm/23/IPM-23-Alexopoulos-Cohen.pdf
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    References listed on IDEAS

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    2. Oliner, Stephen D. & Sichel, Daniel E. & Stiroh, Kevin J., 2008. "Explaining a productive decade," Journal of Policy Modeling, Elsevier, vol. 30(4), pages 633-673.
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    14. Alexopoulos, Michelle & Cohen, Jon, 2009. "Measuring our ignorance, one book at a time: New indicators of technological change, 1909-1949," Journal of Monetary Economics, Elsevier, vol. 56(4), pages 450-470, May.
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    1. Michelle Alexopoulos and Jon Cohen, 2018. "Canadian Productivity Growth, Secular Stagnation, and Technological Change," International Productivity Monitor, Centre for the Study of Living Standards, vol. 35, pages 113-137, Fall.

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