Journal Article

IT investment: will the glory days ever return?

Abstract: While the growth in IT investment has picked up during the recovery and expansion, it has not regained the very rapid pace of the glory days of the late 1990s. Will those glory days ever return? In exploring this question, this Economic Letter looks at one of the main drivers behind the earlier strength in IT investment?the falling prices of IT goods, which themselves were brought about by rapid technological advances in the field. The good news is that some evidence suggests that continued advances should help real IT investment achieve rates of growth that exceed the growth in other investment goods; however, at the same time, there are reasons to think that growth in IT investment is likely to be more subdued than in the late 1990s.

Keywords: Information technology; Capital investments;

Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: FRBSF Economic Letter

Publication Date: 2005

Order Number: 13