Do We Have a New E-Conomy?

13 Pages Posted: 20 Apr 2001 Last revised: 30 Jan 2015

See all articles by Martin Neil Baily

Martin Neil Baily

Institute for International Economics; University of Maryland

Robert Z. Lawrence

Harvard University - Harvard Kennedy School (HKS); National Bureau of Economic Research (NBER)

Date Written: April 2001

Abstract

Used properly, the term 'new e-conomy' is warranted. Since 1995, there has been a wave of innovation associated with both the production and use of information technology that has been translated into improved US economic performance. In particular, there has been a substantial acceleration in trend total factor productivity growth. Most of this acceleration actually took place outside of the computer sector. Almost none of the acceleration was cyclical. There is now clear supportive evidence of an acceleration of productivity in service industries that are major purchasers of information technology such as finance and wholesale and retail trade. These gains reflect not only increased investment in information technology but also complementary innovations in business organization and policy. To be sure, as evidenced by recent financial market volatility, there have been speculative excesses, but these should not obscure the fundamental gains that have been made.

Suggested Citation

Baily, Martin Neil and Lawrence, Robert Z., Do We Have a New E-Conomy? (April 2001). NBER Working Paper No. w8243, Available at SSRN: https://ssrn.com/abstract=267428

Martin Neil Baily (Contact Author)

Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036-1903
United States

University of Maryland

College Park
College Park, MD 20742
United States

Robert Z. Lawrence

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1118 (Phone)
617 496 2850 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
122
Abstract Views
1,989
rank
254,098
PlumX Metrics