It's not what you make, it's how you use IT: measuring the welfare benefits of the IT revolution across countries

Bayoumi, Tamim and Haacker, Maarkus (2002) It's not what you make, it's how you use IT: measuring the welfare benefits of the IT revolution across countries. CEPDP, 548. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753015854

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Abstract

This paper analyzes the welfare benefits from falling relative prices of IT (information technology) goods across a wide range of countries. We find, using two separate methodologies and datasets, that welfare benefits mainly accrue to users of IT, not their producers, because of falling relative prices. This is important, as IT production and use are highly differentiated across countries, and implies that earlier work on how IT production affects real GDP, while useful in calibrating the overall benefits of the IT revolution, are a less valuable way of assessing the distribution of benefits.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2002 the authors
Library of Congress subject classification:	H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System:	O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries D - Microeconomics > D6 - Welfare Economics > D60 - General
Sets:	Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Departments > Economics
Identification Number:	548
Date Deposited:	29 Jul 2008 08:27
URL:	http://eprints.lse.ac.uk/20066/

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