Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/60527 
Year of Publication: 
2001
Series/Report no.: 
Staff Report No. 115
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
This paper examines the link between information technology (IT) and the U.S. productivity revival in the late 1990s. Industry-level data show a broad productivity resurgence that reflects both the production and the use of IT. The most IT-intensive industries experienced significantly larger productivity gains than other industries and a wide variety of econometric tests show a strong correlation between IT capital accumulation and labor productivity. To quantify the aggregate impact of IT-use and IT-production, a novel decomposition of aggregate labor productivity is presented. Results show that virtually all of the aggregate productivity acceleration can be traced to the industries that either produce IT or use IT most intensively, with essentially no contribution from the remaining industries that are less involved in the IT revolution.
Subjects: 
Information technology
Industrial productivity
Labor productivity
Document Type: 
Working Paper

Files in This Item:
File
Size
176.36 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.