ICT Diffusion and Potential Output Growth

26 Pages Posted: 19 Dec 2010

See all articles by Gilbert Cette

Gilbert Cette

Banque de France

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST); Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT); National Bureau of Economic Research (NBER)

Yusuf Kocoglu

University of Toulon-Var

Date Written: April 2004

Abstract

The sustained increase in productivity gains from the spread of ICTs may increase potential output growth in the medium to long term via capital deepening effects and total factor productivity (TFP) gains, and in the short to medium term via the lagged adjustment of wages to productivity gains. The orders of magnitude resulting from the assessment data presented indicate that the medium to long-term effect could be significant. However, there does not appear to be any empirical evidence to support the existence of the temporary short to medium-term effect.

Keywords: Growth, potential output growth, ICT, investment, new economy

JEL Classification: O3, O4

Suggested Citation

Cette, Gilbert and Mairesse, Jacques and Kocoglu, Yusuf, ICT Diffusion and Potential Output Growth (April 2004). Banque de France Working Paper No. 112. Available at SSRN: https://ssrn.com/abstract=1727276 or http://dx.doi.org/10.2139/ssrn.1727276

Gilbert Cette (Contact Author)

Banque de France ( email )

Paris
France

Jacques Mairesse

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

Maastricht University - United Nations and Maastricht Economic Research Institute on Innovation and Technology (UNU-MERIT)

Keizer Karelplein 19
6211 TC Maastricht
Netherlands

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yusuf Kocoglu

University of Toulon-Var ( email )

Avenue de l'Université
La Garde
France

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