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    Resolving the productivity paradox

    Access Status
    Fulltext not available
    Authors
    Carlaw, K.
    Oxley, Leslie
    Date
    2008
    Type
    Journal Article
    
    Metadata
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    Citation
    Carlaw, K. and Oxley, L. 2008. Resolving the productivity paradox. Mathematics and Computers in Simulation. 78 (2-3): pp. 313-318.
    Source Title
    Mathematics and Computers in Simulation
    DOI
    10.1016/j.matcom.2008.01.029
    ISSN
    0378-4754
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/27507
    Collection
    • Curtin Research Publications
    Abstract

    Solow [R. Solow, We'd Better Watch out, New York Times Book Review, 1987, p. 36] made the statement that 'we see computers everywhere except in the productivity statistics'. This has come to be known as the "productivity paradox". Whether this is in fact a paradox or a direct implication of the diffusion of technical change is the focus of this paper. In particular, the implications of two different theoretical treatments of technology diffusion in an economy are considered; the traditional model of [R. Solow, A contribution to the theory of economic growth, Q. J. Econ., 70 (1956) 65-94] and the alternative view of [R.G. Lipsey, K.I. Carlaw, C.T. Bekar, Economic Transformations: General Purpose Technologies and Long Term Economic Growth, Oxford University Press, Oxford, 2005]. These two distinct views articulate two general empirically testable hypotheses that are captured in a number of specific tests including measures of the diffusion of information and communication technologies (ICT). Although weak, the evidence supports the view of [R.G. Lipsey, K.I. Carlaw, C.T. Bekar, Economic Transformations: General Purpose Technologies and Long Term Economic Growth, Oxford University Press, Oxford, 2005]. © 2008 IMACS.

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