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Hiding in Plain Sight: A Note on Public Goods, Information Technology, and Productivity

Russell Houldin

Journal of Economic Issues, 2017, vol. 51, issue 4, 1158-1161

Abstract: This research note advances a conjecture that may help to explain the “paradox” of productivity and information technology (IT). Conventional measures of the economic output of the IT sector may substantially understate the actual value of IT because software is a public good, which is largely unpriced. I provide a simple exploratory calculation that lends plausibility to this explanation. I hope that this conjecture may inspire research by those with greater expertise in the evolution of software.

Date: 2017
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DOI: 10.1080/00213624.2017.1391604

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