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The Output Contributions Of Computer Equipment And Personnel: A Firm-Level Analysis
Abstract
This paper examines the output contributions of capital and labor deployed in information systems (IS) at the firm level during the period 1988–91 throughout the business sector, using two different sources of data on these inputs. Our production function estimates suggest that there are substantial excess returns to both IS capital and IS labor. Computer capital and labor jointly contribute, or account for, about 21 percent of output, although only about 10% of both capital and labor income accrue to IS factors. Although IS employees accounted for a very small share of total employment by 1986, IS employment growth is estimated to have made a larger contribution to 1976–86 output growth than non-IS employment, due to the very rapid growth (16% per annum) of IS employment. The estimated marginal rate of substitution between IS and non-IS employees is 6: one IS employee can be substituted for six non-IS employees without affecting output.
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Citations
Cited by
Bharadwaj, A. S. (2000) · MIS Quarterly · doi:10.2307/3250983 · Cited by 5,042
Beyond computation: Information technology, organizational transformation and business performance
Brynjolfsson, E., & Hitt, L. M. (2000) · Journal of Economic Perspectives · doi:10.1257/jep.14.4.23 · Cited by 3,335
Telecommunications Infrastructure and Economic Development: A Simultaneous Approach
Röller, L.-H., & Waverman, L. (2001) · American Economic Review · doi:10.1257/aer.91.4.909 · Cited by 1,815
Zhu, K., Kraemer, K. L., & Xu, S. (2006) · Management Science · doi:10.1287/mnsc.1050.0487 · Cited by 1,440
Wamba-Taguimdje, S.-L., Fosso Wamba, S., Kala Kamdjoug, J. R., & Tchatchouang Wanko, C. E. (2020) · Business Process Management Journal · doi:10.1108/bpmj-10-2019-0411 · Cited by 1,280
Metadata
- Authors
- Lichtenberg, F. R.
- Venue
- Economics of Innovation and New Technology
- Publisher
- Informa UK Limited
- Published
- 1995-01
- Volume
- 3
- Issue
- 3-4
- Pages
- 201-218
- ISSN
- 1043-8599 (ISSN-L)
- 1476-8364
- OpenAlex
- W2044732380
- Cited by
- 345
- References
- 0
- FWCI
- 11.24
- Type
- journal article
- Language
- en
- Open access
- closed
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