Contents
Abstract 744
Keywords 745
1. Theinformationage 746
1.1. Introduction 746
1.2. Faster, better, cheaper 747
1.2.1. Moore’sLaw 748
1.2.2. Semiconductor prices 748
1.2.3.
ConstantQualityPriceIndexes 7491.2.4. Computers 750
1.2.5. Communications equipment and software 751
1.2.6. Research opportunities 754
1.3. Impact of information technology 755
2. Aggregate growth accounting 756
2.1. The role of information technology 756
2.1.1. Output 757
2.1.2. Capital services 759
2.1.3. Labor services 761
2.2. The American growth resurgence 765
2.2.1. Production possibility frontier 767
2.2.2. Sources of growth 768
2.2.3. Contributions of IT output 770
2.2.4. Total factor productivity 774
2.2.5. Output growth 776
2.2.6. Average labor productivity 778
2.2.7. Research opportunities 778
2.3. Demise of traditional growth accounting 779
2.3.1. Introduction 779
2.3.2. Human capital 780
2.3.3. Solow’s surprise 781
2.3.4. Radical departure 782
Handbook of Economic Growth, Volume 1A. Edited by Philippe Aghion and Steven N. Durlauf © 2005 Elsevier B.V. All rights reserved
DOI: 10.1016∕S1574-0684(05)01010-5
2.3.5. The Rees Report 783
3. Internationalcomparisons 784
3.1. Introduction 784
3.2. Investmentandtotalfactorproductrvity 787
3.2.1. Comparisons of output, input, and productivity 787
3.2.2. Comparisonsofcapitalandlaborquality 791
3.2.3. The relative importance of investment and total factor productivity 796
3.3. Investmentininformationtechnology 796
3.4. Alternative approaches 803
3.4.1. Comparisonswithoutgrowthaccounts 803
3.4.2. Convergence 804
3.4.3. Modelingproductivitydifferences 805
3.5. Conclusions 805
4. Economics on internet time 806
Acknowledgements 807
References 808
Further reading 815