Productivity in the slow lane?: the role of information and communications technology

Abstract: As the current recovery matures in the United States, evidence is mounting that total factor productivity (TFP), the typical measure of technological change, has moved back into the slow lane. This study uses industry data to explore the extent to which the acceleration in TFP in the late 1990s and early 2000s and the subsequent deceleration are attributable to unmeasured investment by firms to take full advantage of the new capabilities made possible by information and communications technology (ICT).

Keywords: ICT; information technology; productivity: TFP; intangible capital; MFP;

JEL Classification: E23;

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Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Current Policy Perspectives

Publication Date: 2014-12-22

Number: 14-10

Pages: 32 pages