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Working Paper
ICT Asset Prices : Marshaling Evidence into New Measures
This paper is a companion to our recent paper, "ICT Prices and ICT Services: What do they tell us about Productivity and Technology?" It provides the sources and methods used to construct national accounts-style price deflators for the major components of ICT investment--communications equipment, computer equipment, and software--that were presented and analyzed in that paper. The ICT equipment measures described herein were also used in Byrne, Fernald, and Reinsdorf (2016). This paper is a companion to our recent paper, "ICT Services and their Prices: What do they tell us about ...
Working Paper
The Digital Economy and Productivity
After reviewing the state of digitalization---the use of digital information technology (IT) throughout the economy---we consider the slippery concept of a distinct digital economy and efforts to record it in national accounts. We then anchor the digital economy in a growth accounting framework, augmenting the conventional measure of the IT contribution to productivity---innovation in the production of IT capital plus labor-saving use of IT throughout the economy---with the contribution from the digital platforms that help users navigate the sprawling information landscape. We discuss the ...
Newsletter
Why the Automotive Chip Crisis Isn't Over (Yet)
New car buyers face limited inventory, long order wait times, and rising prices primarily because of lingering automotive supply chain disruptions. It is difficult for automakers to produce enough vehicles to meet demand, and the main culprit is reported to be the lack of semiconductors—or chips. Professional forecasters have ratcheted down their sales and production predictions as the months go by, and the supply-constrained conditions have not returned to pre-pandemic levels. In this article, I investigate why the chip crisis is still with us and why some forecasts suggest that it will ...
Working Paper
How Fast are Semiconductor Prices Falling?
The Producer Price Index (PPI) for the United States suggests that semiconductor prices have barely been falling in recent years, a dramatic contrast to the rapid declines reported from the mid-1980s to the early 2000s. This slowdown in the rate of decline is puzzling in light of evidence that the performance of microprocessor units (MPUs) has continued to improve at a rapid pace. Over the course of the 2000s, the MPU prices posted by Intel, the dominant producer of MPUs, became much stickier over the chips' life cycle. As a result of this change, we argue that the matched-model methodology ...