The Solow Productivity Paradox in Historical Perspective

24 Pages Posted: 29 Jan 2002

See all articles by Nicholas Crafts

Nicholas Crafts

University of Warwick; Centre for Economic Policy Research (CEPR)

Date Written: January 2002

Abstract

A growth accounting methodology is used to compare the contributions to growth in terms of capital-deepening and total factor productivity growth of three general-purpose technologies, namely, steam in Britain during 1780-1860, electricity and information and communications technology in the United States during 1899-1929 and 1974-2000, respectively. The format permits explicit comparison of earlier episodes with the results for ICT obtained by Oliner and Sichel. The results suggest that the contribution of ICT was already relatively large before 1995 and it is suggested that the true productivity paradox is why economists expected more sooner from ICT.

Keywords: Growth accounting, general purpose technologies, productivity paradox

JEL Classification: O47

Suggested Citation

Crafts, Nicholas, The Solow Productivity Paradox in Historical Perspective (January 2002). Available at SSRN: https://ssrn.com/abstract=298444

Nicholas Crafts (Contact Author)

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
42
Abstract Views
3,385
PlumX Metrics