Comments on Haimowitz, “Has the Surge in Computer Spending Fundamentally Changed the Economy?”
This presentation is the property of its rightful owner.
Sponsored Links
1 / 5

Comments on Haimowitz, “Has the Surge in Computer Spending Fundamentally Changed the Economy?” PowerPoint PPT Presentation


  • 36 Views
  • Uploaded on
  • Presentation posted in: General

Comments on Haimowitz, “Has the Surge in Computer Spending Fundamentally Changed the Economy?”. Spending for computers has increased both in absolute terms and as a percent of GDP.

Download Presentation

Comments on Haimowitz, “Has the Surge in Computer Spending Fundamentally Changed the Economy?”

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Comments on haimowitz has the surge in computer spending fundamentally changed the economy

Comments on Haimowitz, “Has the Surge in Computer Spending Fundamentally Changed the Economy?”

  • Spending for computers has increased both in absolute terms and as a percent of GDP.

  • Average growth per year of the computer sector 1982-96 was 26 percent; compared to annual GDP growth of 2.6 percent.

  • Some economists and technology industry boosters claim that the spending for computers is a highly important factor in explaining robust growth and moderate inflation in the U.S. since 1982.

  • Does this argument hold water?


Comments on haimowitz has the surge in computer spending fundamentally changed the economy

Real Computer Spending as a Share in the Major GDP Categories

Source: Haimowitz (1998, p. 31).


Comments on haimowitz has the surge in computer spending fundamentally changed the economy

Haimowitz’s method

Growth rate of the real capital stock of computing equipment

Contribution of Computer Equipment to Growth

Income share of computing equipment

=

  • Where,

  • Income share of computingis the change in in real output (real income) resulting from an incremental change in the stock of computer equipment, ceteris paribus.


Comments on haimowitz has the surge in computer spending fundamentally changed the economy

Contribution of Computing Equipment to Nonfarm Output

Source: Haimowitz (1998, p. 34)


Comments on haimowitz has the surge in computer spending fundamentally changed the economy

In other words, Haimowitz estimates that about 10 1/2 percent of the growth of real output in the U.S. between 1992-92 can be explainedby increases in spendingfor computers and software


  • Login