Online citations, reference lists, and bibliographies.
← Back to Search

The Resurgence Of Growth In The Late 1990s: Is Information Technology The Story?

Stephen D. Oliner, D. Sichel
Published 2000 · Economics, History

Cite This
Download PDF
Analyze on Scholarcy
Share
The performance of the U.S. economy over the past several years has been remarkable, including a rebound in labor productivity growth after nearly a quarter century of sluggish gains. To assess the role of information technology in the recent rebound, this paper re-examines the growth contribution of computers and related inputs with the same neoclassical framework that we have used in earlier work. ; Our results indicate that the contribution to productivity growth from the use of information technology - including computer hardware, software, and communication equipment - surged in the second half of the 1990s. In addition, technological advance in the production of computers appears to have contributed importantly to the speed-up in productivity growth. All in all, we estimate that the use of information technology and the production of computers accounted for about two-thirds of the 1 percentage point step-up in productivity growth between the first and second halves of the decade. Thus, to answer the question posed in the title of this paper, information technology largely is the story.
This paper references
10.1080/05775132.1995.11471862
Is a Productivity Revolution under Way in the United States
Stephen D. Oliner (1995)
U.S. Economic Growth in the New Millennium
Dale W Jorgenson (2000)
The Measurement of Depreciation in the U.S. National Income and Product Accounts
B. Fraumeni (1997)
Table 5 (Line labeled
Jorgenson-Stiroh (2000)
10.1257/jep.14.4.3
The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?
Stephen D. Oliner (2000)
10.2307/1059497
Productivity and U.S. Economic Growth
D. Jorgenson (1999)
10.1257/AER.91.2.308
Do We Have a New E-Conomy?
M. Baily (2001)
CIO's Forecast 20 Percent Increase in IT Spending in 1998
Idg News Service
10.1017/CBO9780511895746.005
ON THE MEASUREMENT OF TECHNOLOGICAL CHANGE
E. Domar (1961)
10.1162/003465302760556477
Low-Frequency Movements in Stock Prices: A State-Space Decomposition
N. Balke (2002)
Computers and Aggregate Economic Growth: An Update
D. Sichel (1999)
10.1257/JEP.12.1.3
Consumer Prices, the Consumer Price Index, and the Cost of Living
M. Boskin (1998)
10.1016/S0167-2231(97)00005-5
1974: A comment
S. Kortum (1997)
10.1016/S0167-2231(01)00056-2
Computers and growth with frictions: aggregate and disaggregate evidence
M. Kiley (2001)
10.2307/1926047
TECHNICAL CHANGE AND THE AGGREGATE PRODUCTION FUNCTION
R. Solow (1957)
The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox
P. David (1990)
10.2139/ssrn.293951
Measuring the Natural Rate of Interest
T. Laubach (2001)
High-Tech Industry Productivity and Hedonic Price Indices,” in Industry Productivity: International Comparison and Measurement Issues
Triplett (1996)
Electronic Commerce: Prices and Consumer Issues for Three Products
J. P. Bailey (1998)
The Shocking Economic Effect of B2B
Martin Brookes (2000)
B-to-B By the Numbers
Kim Cross
IT Spending and Staffing Survey Results
Gartner Group
10.1006/JCEC.2001.1716
Structural Transformation and Economic Growth in Hong Kong: Another Look at Young's Hong Kong Thesis
H. Imai (2001)
10.1145/163298.163309
The productivity paradox of information technology
Erik Brynjolfsson (1993)
10.1111/J.1465-7295.1998.TB01705.X
Computers, Productivity, and Input Substitution
K. Stiroh (1998)
Detail may not sum to totals due to rounding
Other .25 .67 .41 Note (2000)
AB-to-B By the Numbers,@ Business 2
Kim Cross (1999)
10.1080/10438599500000008
Computers And Growth
D. Jorgenson (1995)
10.1287/MNSC.46.4.563.12061
Frictionless Commerce? A Comparison of Internet and Conventional Retailers
M. Smith (1999)
Table 4 (Column labeled Obsolescence Model " ), p. 35. The figure shown for 1980-95 is a weighted average of figures presented by Whelan for 1980-89 and
Whelan (1990)
The Intangible Costs and Benefits of Computer Investments: Evidence from the Financial Markets
E. Brynjolfsson (2001)
a Percentage points per year
10.1257/AER.91.2.313
Projecting the economic impact of the Internet
R. Litan (2001)
10.3386/W6647
Accounting for Growth
Jeremy Greenwood (1998)
Sources: This paper: Authors' calculations based on BEA and BLS data
Table 5 (Line labeled " Computers (K c ) " )
Jorgenson-Stiroh (2000)
A Technical Change and the Aggregate Production Function . @ Review of Economics and Statistics
J Kevin (1957)
10.1080/08109020110053541
Gender and the Information Work Force: New Zealand Evidence and Issues
H. Engelbrecht (2001)
A1998 IT Spending and Staffing Survey Results
Gartner Group (1999)
Table 3 (Line labeled " Computers " ). These figures refer to the version of his model with " moderate " adjustment costs
Kiley (1999)
Carnegie Rochester Conference Series on Public Policy
Jeremy Greenwood (1974)
Technical Change and the Aggregate Production Function . ” Review of Economics and Statistics
J Kevin (1957)
Has the “New Economy” Rendered the Productivity Slowdown Obsolete?
R. Gordon (1999)
10.2139/ssrn.186148
Computers and Growth with Costs of Adjustment: Will the Future Look Like the Past?
M. Kiley (1999)
1974-84 -.34 1985-98 -.27 Percentage points per year. a Sources: This paper: Authors' calculations based on BEA and BLS data
Kiley (1999)
High-Tech Investment and the Pervasive Slowdown in the Growth of Capital Services. " Mimeo
Mun S Ho (1999)
U.S. High-Tech Investment and the Pervasive Slowdown in the Growth of Capital Services.
Ho (1997)
Growth Accounting with Technological Revolutions
A. Hornstein (1999)
10.1006/REDY.2002.0170
ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries
A. Colecchia (2002)
10.5860/choice.35-2838
The Computer Revolution: An Economic Perspective
D. Sichel (1997)
10.2307/2297252
Growth Accounting with Intermediate Inputs
Charles R. Hulten (1978)
10.2307/2281111
Economic Report of the President
G. Bush (2001)
CIO's Forecast 20 Percent Increase in IT Spending in 1998
Idg News (1998)
Measuring Stocks of Computer Peripheral Equipment: Theory and Applications
Stephen D Oliner (1994)
U.S. Economic Growth in the New Millennium Brookings Papers on Economic Activity
Dale W Jorgenson (2000)
10.17016/FEDS.2000.06
Computers, obsolescence, and productivity
K. Whelan (2000)
10.2307/2534658
Computers and Output Growth Revisited: How Big Is the Puzzle?
Stephen D. Oliner (1994)
High Tech Industry Productivity and Hedonic Price Indexes
J. Triplett (1996)
The Economic and Budget Outlook
(1998)
AThe Resurgence of Growth in the Late 1990s: Is Information Technology the Story?@ Mimeo
Oliner (2000)
10.1016/S0167-2231(01)00054-9
Productivity Growth in the 1990s: Technology, Utilization, or Adjustment?
S. Basu (2001)
10.1006/REDY.2002.0169
What Happens When the Technology Growth Trend Changes?: Transition Dynamics, Capital Growth and the 'New Economy'
M. R. Pakko (2001)
10.1257/JEP.2.4.3
Symposium on the Slowdown in Productivity Growth
S. Fischer (1988)



This paper is referenced by
10.1080/14649880120050219
Education for Technology Readiness: Prospects for Developing Countries
J. Lee (2001)
10.1111/1467-8411.00103
The Digital Divide in East Asia
A. Sidorenko (2001)
Preface: Technology, growth, and the labor market
Donna K Ginther (2002)
Growth and Innovation in the New Economy
K. Stiroh (2002)
10.5089/9781451849165.001
You Say You Want a Revolution: Information Technology and Growth
M. Haacker (2002)
Difusión y absorción de las TIC en la economía española
L. A. Santiago (2006)
Measuring Information Technology and Productivity in the New Economy
K. Stiroh (2002)
10.1016/j.infoecopol.2005.10.002
ICT productivity and firm propensity to innovative investment: Evidence from Italian microdata
Gianfranco E. Atzeni (2006)
Convergence and Productive Efficiency in the Context of 18 Transition Economies: Empirical Investigation Using DEA
S. Samoilenko (2008)
The importance of being IT The importance of being IT The importance of being IT The importance of being IT
S. Valentini (2008)
10.1016/J.JAPWOR.2009.02.001
Does Information Technology Raise Japan's Productivity?
T. Fueki (2009)
10.1007/s12599-010-0111-y
Preserving Knowledge on IS Business Value
G. Schryen (2010)
10.22059/IER.2011.32729
Information And Communication Technology Externalities And Economic Growth In Newly Industrialized Countries
M. Farhadi (2011)
10.1515/bejm-2013-0064
Information and communication technologies over the business cycle
B. Molinari (2013)
CREATIVE DESTRUCTION AND FIRM-SPECIFIC PERFORMANCE By
H. Chun (2005)
Does offshoring manufacturing harm innovation in the home country? Evidence from Taiwan and China
Lee G. Branstetter (2017)
The Solow Productivity Paradox in Historical Perspective
N. Crafts (2002)
10.6007/ijarafms/v8-i4/5585
Economic Policy Management in Nigeria : Effective Diversification Approaches
Marire Mary Ijeoma (2019)
Analysis of the impact of information and communication technologies on the development of Latvia as a new member of the EU
J. Ulmanis (2007)
Does ICT diffusion overcome geographic disadvantages in economic growth? It finds that ICT diffusion does show positive correlations in economic growth for inland and geographic remote countries. These findings may help policy-makers to formulate new spatial-economic policies
Yangzi Tang (2012)
Productivity in the UK : The Evidence and the Government ’ s Approach
(2000)
10.1111/j.1468-0475.2007.00402.x
Information and Communications Technology as a General-Purpose Technology: Evidence from US Industry Data
S. Basu (2007)
Adoption and Impact of New Information Technologies and New HR Practices The Valve- Making Industry in the United States and United Kingdom
Ann P. Bartel (2011)
10.2139/ssrn.282172
ICT and Productivity Growth in the United Kingdom
Nicholas Oulton (2001)
10.2139/ssrn.257599
Interpreting Productivity Growth in the New Economy: Some Agnostic Notes
E. Gundlach (2001)
Productivity Growth , Technical Progress , and Efficiency Change in Information Technology Industries
B. Shao (2002)
The Relation of Information Technologies and the Total Factor Productivity in Uruguayan Firms
M. M. Costa (2018)
Short Term Prospects for the European Economy : evaluating the current slowdown and the aftermath of the September 11th attack on the USA. report produced by the EUROFRAME group of Research Institutes.
C. Mathieu (2001)
10.1016/J.SBSPRO.2013.12.974
Impact of Information and Telecommunication Technologies Development on Labour Productivity
A. Maciulyte-Sniukiene (2014)
10.2139/ssrn.271824
On the Importance of Geographic and Technological Proximity for R&D Spillovers: An Empirical Investigation
Michael J. Orlando (2000)
Working Paper 07-04 - Assessing the contribution of ICT to sectoral economic growth in Belgium: a growth accounting analysis (1991-2000)
M. Pamukçu (2004)
10.3386/w13011
Creative Destruction and Firm-Specific Performance Heterogeneity
R. Morck (2007)
See more
Semantic Scholar Logo Some data provided by SemanticScholar