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THE EU IN THE WORLD ECONOMY

This article discusses the impact of information technology (IT) on economic growth, productivity, and capital investment in the European Union. It explores the contribution of IT to total factor productivity, the role of IT in capital services, and the effects of IT on labor input and wage inequality. The article also addresses the challenges in measuring the productivity gains from IT and the potential of IT-producing and IT-using industries in driving economic growth.

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THE EU IN THE WORLD ECONOMY

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  1. European Union Brussels, Belgium THE EU IN THE WORLD ECONOMY By Dale W. Jorgenson Harvard University March 15, 2007 http://post.economics.harvard.edu/faculty/jorgenson/

  2. Economic Growth in the Information Age INTRODUCTION: Prices of Information Technology ROLE OF INFORMATION TECHNOLOGY: IT Prices and the Cost of Capital WORLD GROWTH RESURGENCE: IT Investment and Productivity Growth ECONOMICS ON INTERNET TIME: The New Research Agenda

  3. ROLE OF INFORMATION TECHNOLOGY:IT Prices, Investment, and Productivity. INPUT SHARES OF IT: Computers, Communications Equipment, and Software. CAPITAL CONTRIBUTION: IT versus Non-IT Capital Services. CAPITAL CONTRIBUTION BY TYPE: Computers, Communications Equipment, and Software.

  4. WORLD GROWTH RESURGENCE: IT Investment and Productivity Growth. TOTAL FACTOR PRODUCTIVITY: IT-Production versus Non-IT Production. SOURCES OF ECONOMIC GROWTH: Capital Input, Labor Input, and TFP. LABOR INPUT GROWTH: Hours Worked and Labor Quality.

  5. Sources of Gross Domestic Product Growth Labor Input Non-IT Capital Input IT Capital Input TFP

  6. ECONOMICS ON INTERNET TIME: The New Research Agenda. • The Solow Paradox -- we see computers everywhere but in the productivity statistics -- versus the Information Age. • Equity Valuations and Growth Prospects: accumulation of intangible assets versus irrational exuberance. • Widening Wage Inequality:capital-skill complementarity versus skill-biased technical change. •  Modeling IT-Producing and IT-Using Industries: investment versus TFP as sources of economic growth.

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