Growth, capital measurement and new technologies are the main topics covered in this book, which is the result of contributions presented and discussed at an international. In the following pages we present the book's main contributions made by different authors around eight topics.
Methodological issues
The latter is best captured by measures of productive equity and capital services as developed by Jorgenson and Griliches (1967). The paper also presents several results to test the sensitivity of the capital services estimates to the assumptions made.
Productivity and technology in the long run
Third, ICT's contribution to productivity growth appears to be greater than earlier general purpose technologies. He argues that the spread of ICT in OECD countries has been relatively fast compared to some other technologies, although technological diffusion typically takes a long time.
The effects of ICT on economic growth
First, the rate of diffusion of ICT appeared to be much faster and its direct economic impact greater than that of earlier general-purpose technologies such as steam and electricity. The positive effect of ICT on the latter sectors can be enhanced if technical progress is incorporated into the new forms of capital.
The ICT producing sector
In Chapter 5, Van Ark and Timmer provide some estimates of the contribution of ICT-producing industries to total TFP growth in the EU and the US. Their preliminary results show that the contribution of ICT-producing industries to TFP growth is higher in the U.S.
ICT impact on structural change
This increase was accompanied by a sharp decline in the contribution of non-ICT capital deepening (non-residential structures and to a lesser extent other non-ICT equipment). These include occupational restructuring and changes in the composition of intermediate inputs, as well as changes in the overall distribution of establishment size distributions within manufacturing.
The impact of ICT at the firm level
The strongest results of the effects of IT on productivity growth were found in the late 1990s, while Wolff's results seem to show that it was heavily influenced by changes in occupational composition and input structure from the early 1970s. On the one hand, firms that have innovated in the past are more likely to have the capabilities needed to adopt ICT and to introduce the changes needed to acquire ICT.
Growth and convergence
His emphasis thus shifts from identifying the sources of growth to the existence of convergence. ICT capital accumulation is not the focus of his analysis, but most of the topics he addresses are closely related to the main themes discussed here.
Concluding remarks
Introduction
Two OECD manuals, Taking Productivity (2001a) and Taking Capital (2001b), have described the concept and measurement of capital services, and their relationship to the better known measures of gross and net capital stocks. The article also raises a number of theoretical and practical issues that arise in the context of capital measurement.
Framework
- The wealth (net) and the gross capital stock
- User costs
- Depreciation
- More on expected price changes
But recognizing the need to measure differences in the flow of capital services per unit of investment can be useful. A simple comparison of the two expressions shows that Apparent Capital Productivity Index = (Actual Capital Productivity Index)().
- Volume index of total capital services
- Net (wealth) stock
In the total value of capital services, there is a quantitative component consisting of productive stocks of various STI assets and a price component, user costs. Change in the value of capital services over time. u S− − has the following index number decomposition:.
Results
Again, this comparison shows the crucial importance of the choice of price indices in the production of capital services and capital stock data. Permanent Productive Capital and the Quantity Index for Capital Service Flows.” Paper presented at the Third Meeting of the Canberra Group on Capital Stock Statistics, Washington, DC, 1999.
In the present calculations, a normal distribution with a standard deviation of 25% of the mean lifetime is chosen to represent the probability of retirement. To obtain a measure of p, expected headline inflation, we construct a 5-year moving average of the rate of change.
Differences between capital services estimates by Statistics Canada and the oECD Statistics estimates by Statistics Canada and the oECD Statistics
- Introduction
- Methodology: a short survey
- The data
- Results
- Conclusions
- Introduction
- The impact of technology on productivity
In the USA, the BEA (Bureau of Economic Analysis) extensively used research by Hulten and Wykoff (1980) and Wykoff (1989) in determining average service lives and the corresponding depreciation rates. Estimate of the stock of capital in Spain." The Review of Income and Wealth 46, no.
Historical comparisons: pitfalls and limitations
Source: Crafts (2002), Van Ark, Albers and Rensman (1997), own calculations. . The manufacturing sector appears to have been more prominent in the era of electrification that began around the First World War. See Table 3.6 on the impact of ICT on productivity.9 The available data clearly show that the contribution of TFP growth in the ICT sector to the aggregate is greater than that of electricity and at a shorter time distance from the initial technological breakthrough.
Conclusions
Simulating two views of the British Industrial Revolution.” Journal of Economic History 60, no. This paper examines the contribution of ICT (Information and Communication Technologies) to productivity at the macro-economic, industry and firm level.
Introduction
It also examines the spread of ICT across OECD (Organization for Economic Co-operation and Development) countries as an important determinant of economic effects. The next section first briefly examines the extent of ICT diffusion as an important driver of the economic effects of ICT.
The diffusion of ICT in oECD countries
Another important aspect of ICT diffusion is the size of the ICT sector, i.e. the source of this data is Eurostat's Community survey on the use of ICT in companies.
The impact of ICT investment
This faster real growth will translate into a greater contribution of ICT capital to growth performance.7 The method used in Figure 4.7 adjusts for these differences. The impact of ICT investments on economic growth has not disappeared with the economic slowdown.
The impact of the ICT producing sector
In the USA, Japan and Sweden, the ICT-producing sector also contributed significantly to productivity growth. The ICT-producing service sector can provide opportunities for further productivity growth in a wider range of OECD countries.
The impact of ICT use
- Impact at the industry level
- Impact at the firm level
- Does the impact of ICT at the firm level differ across countries?countries?
For Germany, Hempell (2002) showed significant productivity effects of ICT in firms in the German service sector. This can be seen in the relationship between the use of ICT and the year in which firms first adopted ICT.
Concluding remarks
Cross-country comparisons of the productivity impact of ICT show some evidence that the impact of ICT at the firm level may be smaller in European countries such as Germany than in the United States (Haltiwanger, Jarmin, and Schank 2003). Impact of the adoption of advanced information and communications technologies on business performance in the Canadian manufacturing sector.
Introduction
But to test this hypothesis, a comprehensive assessment of the effects of the IT revolution on economic growth in the European Union is needed. This section also provides an indication of the differential contribution of IT goods production to TFP growth.
IT investment series for the European Union
In both regions, in the early 1980s and again in the second half of the 1990s, a clear trend towards an increase in the share of investments in IT can be observed. In fact, in 2000 the rate of IT investment in the European Union was comparable to that of the United States.
IT capital services
While in the early 1990s the overall growth of capital services between the EU and the US was approximately the same, a large gap emerged in the second half of the 1990s. But due to the much lower share of IT capital in capital compensation, the contribution of IT capital to total capital services growth in the EU is much lower than in the US.
Growth accounting
When focusing on the reasons for the widening GDP growth gap between the EU and the US, differences in the contribution of IT capital play a minor role. Even more importantly, TFP growth in non-IT producing industries declined in the EU while it accelerated in the US, accounting for almost half (0.98 percentage points) of the change in the labor productivity growth differential.19.
Conclusions
The second type of information required is a measure of IT and non-IT capital deepening and TFP growth by industry to reveal the industries that account for the slowdown in Europe's productivity growth in the 1990s. 1 At the time of writing the author was engaged as an economist in the Division of Macroeconomic Developments of the Euro Area, European Central Bank.
Introduction
The latter observation is reinforced by developments in the postal and telecommunications sector, where the euro area fared better than the US, presumably due to a better regulatory framework. Furthermore, it remains true that the pure capital deepening effect in the US has been somewhat more important than in the euro area.
Productivity developments in the euro area and the United Statesthe United States
Graphs 6.1 and 6.2 show the development in the euro area and the USA in labor productivity and employment, both measured by the total number of working hours, in a somewhat longer time perspective. Overall, while ALP growth has been higher, labor input growth has been significantly lower in the euro area than in the US.
Growth accounting
This would imply that there may be an upward bias in the estimates of the contribution of ICT to ALP growth. This may imply a downward bias in the estimates of the contribution of software to ALP growth for the euro area compared to the United States.
Sectoral developments
Regarding the first explanation, a Slifman/Corrado method was performed here for sector-specific productivity data in the Eurozone and the United States. Productivity growth in the sector database used here was negative over the previously distinguished periods in a number of sectors in the euro area and the US.
Conclusion
In explaining the difference in productivity performance in the 1990s between the euro area and the United States, part of the measured difference may be due to differences in statistical methodologies. Productivity Growth in ICT-Producing and Using Industries: A Source of OECD Growth Gaps.
Data sources and aggregation methods
Investment data have been aggregated to produce estimates of euro area investment in different types of capital goods. Share of capital: The share of income for each type of capital is calculated from the following equation:.
