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What's Spurious, What's Real? Measuring the Productivity Impacts of ICT at the Firm-Level

  • Hempell, Thomas
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    In order to assess the productivity effects of information and communication technologies (ICT), regressions based on cross?sectional firm?level data may yield unreliable results for the commonly employed production function framework. In this paper, various estimation biases and econometric strategies to overcome their sources are discussed. The effects are illustrated on the basis of a representative set of panel data for German service firms. The application of a suited SYS?GMM estimator yields evidence for significant productivity effects of ICT which are substantially smaller though than those suggested by cross?section or pooled OLS estimates.

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    File URL: http://econstor.eu/bitstream/10419/24643/1/dp0242.pdf
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    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 02-42.

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    Date of creation: 2002
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    Handle: RePEc:zbw:zewdip:676
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