It’s Not What You Make, It’s How You Use IT: Measuring the Welfare Benefits of the IT Revolution Across Countries

Author/Editor:

Tamim Bayoumi ; Markus Haacker

Publication Date:

July 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 2002/117

Subject:

Expenditure Labor National accounts Price indexes Prices Production Total factor productivity

English

Publication Date:

July 1, 2002

ISBN/ISSN:

9781451854022/1018-5941

Stock No:

WPIEA1172002

Pages:

31

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