TY - JOUR
T1 - The impact of computers on manufacturing productivity growth
T2 - A multiple-indicators, multiple-causes approach
AU - Siegel, Donald
PY - 1997/2
Y1 - 1997/2
N2 - An increase in computer usage could improve product and labor quality. Unfortunately, many quality improvements are not incorporated in price indexes. Thus, a quality bias could distort conventional estimates of the marginal productivity of computers, which are based on the assumption that prices are measured without error. Using detailed industry data, we estimate a multiple-indicators, multiple-causes model that allows us to investigate this relationship, while controlling for measurement errors. Our findings suggest that computers are an important source of quality change and that computers are positively related to productivity growth when adjustments are made for measurement errors.
AB - An increase in computer usage could improve product and labor quality. Unfortunately, many quality improvements are not incorporated in price indexes. Thus, a quality bias could distort conventional estimates of the marginal productivity of computers, which are based on the assumption that prices are measured without error. Using detailed industry data, we estimate a multiple-indicators, multiple-causes model that allows us to investigate this relationship, while controlling for measurement errors. Our findings suggest that computers are an important source of quality change and that computers are positively related to productivity growth when adjustments are made for measurement errors.
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U2 - 10.1162/003465397556548
DO - 10.1162/003465397556548
M3 - Article
AN - SCOPUS:0030858543
SN - 0034-6535
VL - 79
SP - 68
EP - 77
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
IS - 1
ER -