Do We Have A New E-Conomy?

Martin N. Baily and Robert Lawrence

No 8243, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Used properly, the term 'new e-conomy' is warranted. Since 1995, there has been a wave of innovation associated with both the production and use of information technology that has been translated into improved US economic performance. In particular, there has been a substantial acceleration in trend total factor productivity growth. Most of this acceleration actually took place outside of the computer sector. Almost none of the acceleration was cyclical. There is now clear supportive evidence of an acceleration of productivity in service industries that are major purchasers of information technology such as finance and wholesale and retail trade. These gains reflect not only increased investment in information technology but also complementary innovations in business organization and policy. To be sure, as evidenced by recent financial market volatility, there have been speculative excesses, but these should not obscure the fundamental gains that have been made.

JEL-codes: E2 O4 (search for similar items in EconPapers)
Date: 2001-04
Note: EFG PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (76)

Published as American Economic Review (American Economic Association) May 2001
Published as Martin Neil Baily & Robert Z. Lawrence, 2001. "Do We Have a New E-conomy?," American Economic Review, American Economic Association, vol. 91(2), pages 308-312, May.

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Journal Article: Do We Have a New E-conomy? (2001)
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