The relentless decline in the prices of information technology (IT) has steadily enhanced the role of IT investment as a source of economic growth in the United States. Productivity growth in IT-producing industries has gradually risen in importance, and a productivity revival has taken place in the rest of the economy. In this book Dale Jorgenson shows that IT provides the foundation for the resurgence of American economic growth. Information technology rests in turn on the development and deployment of semiconductors--transistors, storage devices, and microprocessors. The semiconductor and IT industries are global in scope, with an elaborate international division of labor. This poses important questions about the American growth resurgence. For example, where is the evidence of the "new economy" in other leading industrialized nations? To address this question, Jorgenson compares the recent growth performance in the G7 countries--Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Several important participants in the IT industries, such as South Korea, Malaysia, Singapore, and Taiwan, are newly industrializing economies. What does this portend for the future economic growth of developing countries? Jorgenson analyzes past and future growth trends in China and Taiwan to arrive at a fuller understanding of economic growth in the information age.
Author(s): Dale W. Jorgenson
Edition: 1st
Publisher: The MIT Press
Year: 2002
Language: English
Pages: 493
Contents......Page 6
List of Figures......Page 10
List of Tables......Page 14
Preface......Page 18
List of Sources......Page 30
1 Information Technology and the U.S. Economy......Page 32
1.1 The Information Age......Page 34
1.2 The Role of Information Technology......Page 43
1.3 The American Growth Resurgence......Page 53
1.4 Economics on Internet Time......Page 70
Notes......Page 71
2.1 Introduction......Page 74
2.2 Computer Investment......Page 76
2.3 A Model of Computer Services......Page 80
2.4 Computer Stocks and Services......Page 86
2.5 Computers and Growth......Page 92
2.6 Conclusion......Page 98
Notes......Page 99
3.1 Introduction......Page 102
3.2 The Recent U.S. Growth Experience......Page 105
3.3 Setting the Speed Limit......Page 134
3.4 Industry Productivity......Page 141
3.5 Conclusions......Page 154
Appendix A: Estimating Output......Page 157
Appendix B: Estimating Capital Services......Page 160
Appendix C: Estimating Labor Input......Page 172
Appendix D: Estimating Industry-Level Productivity......Page 175
Appendix E: Extrapolation for 1999......Page 176
Notes......Page 177
4.1 Introduction......Page 182
4.2 Review of Previous Work on China’s Energy-Output Ratio......Page 183
4.3 Problems with Official Chinese Data......Page 186
4.4 Constructing a Consistent Data Set......Page 189
4.5 A Methodology for Decomposing the Change in Energy Intensity......Page 195
4.6 Decomposition of the Change in China’s Energy Intensity......Page 198
4.7 Effects of Using Alternative Estimates of Inflation......Page 204
4.8 Conclusions......Page 206
Notes......Page 207
5.1 Introduction......Page 210
5.2 Investment and Productivity......Page 212
5.3 Sources of Growth......Page 218
5.4 Convergence......Page 227
5.5 Endogenizing Growth......Page 232
Appendix A: Data Sources......Page 237
Notes......Page 240
6.1 Introduction......Page 242
6.2 International Comparisons......Page 249
6.3 Alternative Approaches......Page 268
6.4 Summary and Conclusion......Page 274
Appendix A: King-Fullerton Framework......Page 279
Notes......Page 286
7.1 Introduction......Page 290
7.2 Sources and Uses of Growth......Page 293
7.3 The Growth Revival......Page 297
7.4 Endogenous Growth......Page 301
7.5 Econometric Modeling......Page 308
7.6 Conclusion......Page 312
Notes......Page 316
8.1 Introduction......Page 320
8.2 The Education Sector and Human Capital......Page 323
8.3 A Dynamic Model with Human Capital......Page 330
8.4 Data and Parameter Estimates......Page 339
8.5 The Effect of Increased Expenditures on Education......Page 340
8.6 The Effects of Increased Enrollment......Page 343
8.7 Conclusion......Page 348
Notes......Page 349
9 Did We Lose the War on Poverty?......Page 352
9.1 The Official Poverty Line......Page 353
9.2 Measuring the Household Standard of Living......Page 354
9.3 Comparing Standards of Living among Households......Page 356
9.4 Measuring the Household Cost of Living......Page 358
9.5 Estimates of the Poverty Rate......Page 359
9.6 Poverty and Redistributional Policy......Page 361
9.7 From Individual to Social Welfare......Page 363
9.8 Poverty and Inequality within and between Groups......Page 366
9.9 Measuring the Standard of Living......Page 367
9.10 Recommendations and Conclusions......Page 368
Notes......Page 369
10 Indexing Government Programs for Changes in the Cost of Living......Page 370
10.1 Measuring the Cost of Living......Page 374
10.2 Implementing Cost-of-Living Indexes......Page 377
10.3 Group Cost-of-Living Indexes......Page 383
10.4 Recommendations and Conclusions......Page 390
11 Controlling Carbon Emissions in China......Page 392
11.1 Introduction......Page 393
11.2 A Dynamic Economy-Energy-Environment Model for China......Page 395
11.3 Data and Exogenous Variables......Page 399
11.4 Carbon Taxes and Emissions......Page 401
11.5 Conclusions......Page 411
Appendix A: Description of the Model......Page 413
Notes......Page 421
12.1 Introduction......Page 424
12.2 Provisions of U.S. Tax Law......Page 432
12.3 Fundamental Tax Reform......Page 434
12.4 Conclusion......Page 450
Notes......Page 451
References......Page 452
C......Page 486
E......Page 488
I......Page 489
L......Page 490
P......Page 491
T......Page 492
Z......Page 493
