Substitutability and Accumulation of Information Technology Capital in U.S. Industries.

The substitution toward information technology (IT) capital fueled by the rapid decline in IT prices is regarded as an important source of U.S. economic growth. Using data on 41 U.S. industries for the period from 1984 to 1999, this article examines the degree of substitutability between IT capital...

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Publicado en:Southern Economic Journal Vol. 72; no. 4; pp. 1002 - 1016
Autores principales: Hyunbae Chun, Sung-Bae Munt
Formato: Artículo
Publicado: Wiley-Blackwell Apr2006
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Acceso en línea:Ver este registro en EBSCOhost
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          Hyunbae Chun
          Sung-Bae Munt
        affil:
          Department of Economics, Queens College, City University of New York, 65-30 Kissena Boulevard, Flushing, NY 11367 USA
          IT Industry Division, Korea Information Strategy Development Institute, 1-1 Juam-dong, Kwachun, Kyunggi-do, 427-7 10, Korea
      su:
        United States
        Information technology
        Economic development
        Capitalism
        Capital investments
        Internet industry
      sug:
        subj:
          Information technology
          Economic development
          Capitalism
          United States
          Internet Publishing and Broadcasting and Web Search Portals
          Capital investments
          Internet industry
      ab: The substitution toward information technology (IT) capital fueled by the rapid decline in IT prices is regarded as an important source of U.S. economic growth. Using data on 41 U.S. industries for the period from 1984 to 1999, this article examines the degree of substitutability between IT capital and other inputs and quantifies the contribution of IT substitution to the accumulation of IT capital per hour worked. Estimates of various elasticities of substitution indicate that IT capital and other factors of production are substitutes. In particular, the substitution of IT capital for other inputs is salient in the industries with less IT capital. Among the sources of IT capital deepening, IT substitution accounts for about 60% of growth in IT capital per hour worked.
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