Information Technology and Productivity: A Review of the Literature
In recent years, the relationship between information technology (IT) and productivity has become a source of debate. In the 1980s and early 1990s, empirical research generally did not significant productivity improvements associated with IT investments. More recently, as new data are identified and new methodologies are applied, several researchers have found evidence that IT is associated not only with improvements in productivity, but also in intermediate measures, consumer surplus, and economic growth. Nonetheless, new questions emerge even as old puzzles fade. This survey reviews the literature, identifies remaining questions, and concludes with recommendations for applications of traditional methodologies to new data sources, as well as alternative, broader metrics of welfare to assess and enhance the benefits of IT.
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