It's Not What You Make, It's How You Use it: Measuring the Welfare Benefits of the it Revolution Across Countries

6 Pages Posted: 3 Feb 2006

See all articles by Tamim Bayoumi

Tamim Bayoumi

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Markus Haacker

International Monetary Fund (IMF) - Research Department

Date Written: July 2002

Abstract

This paper analyzes the welfare benefits from falling relative prices of IT (information technology) goods across a wide range of countries. We find, using two separate methodologies and datasets, that welfare benefits mainly accrue to users of IT, not their producers, because of falling relative prices. This is important, as IT production and use are highly differentiated across countries, and implies that earlier work on how IT production affects real GDP, while useful in calibrating the overall benefits of the IT revolution, are a less valuable way of assessing the distribution of benefits.

Keywords: Technological change, information technology, terms of trade, welfare benefits

JEL Classification: D60, F43, 047, 057

Suggested Citation

Bayoumi, Tamim and Haacker, Markus, It's Not What You Make, It's How You Use it: Measuring the Welfare Benefits of the it Revolution Across Countries (July 2002). IMF Working Paper No. 02/117. Available at SSRN: https://ssrn.com/abstract=879863

Tamim Bayoumi (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6333 (Phone)
202-623-4795 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Markus Haacker

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-4089 (Phone)
202-589-4089 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
45
Abstract Views
498
PlumX Metrics