ESRI IntlConfJapanEcon 07 0625

Economic Growthand Information Technology in the U.S. and Japan: 

Economic Growth and Information Technology in the U.S. and Japan Dale W. Jorgenson (Harvard University) Koji Nomura (Keio University) Economic and Social Research Institute, Cabinet Office June 25, 2007, Tokyo, Japan

Economic Growth in the Information Age: 

Economic Growth in the Information Age INTRODUCTION: Prices of Information Technology THE INFORMATION AGE: Faster, Better, Cheaper! ROLE OF INFORMATION TECHNOLOGY: IT Prices and the Cost of Capital ECONOMIC GROWTH in the U.S. and JAPAN: IT Investment and Productivity Growth ECONOMICS ON INTERNET TIME: The New Research Agenda

The Information Age:Faster, Better, Cheaper!: 

The Information Age: Faster, Better, Cheaper! Moore’s Law: The number of transistors on a chip doubles every 18-24 months(Pentium 4, released November 20,2000, has 42 million transistors). Moore (1998): "If the automobile industry advanced as rapidly as the semiconductor industry, a Rolls Royce would get half a million miles per gallon, and it would be cheaper to throw it away than to park it." Invention of the Transistor: Development of Semiconductor Technology. The Integrated Circuit: Memory Chips; Logic Chips.

Slide4: 

Source: No Exponential is Forever, Gordon Moore ftp://download.intel.com/research/silicon/Gordon_Moore_ISSCC_021003.pdf)

Holding Quality ConstantMatched Models and Hedonics: 

Holding Quality Constant Matched Models and Hedonics  Software: Prepackaged, Custom, and Own-Account. Semiconductor Price Indexes: Memory and Logic Chips.  Computer Price Indexes: The BEA-IBM Collaboration. Communications Equipment: Terminal, Switching, and Transmission.

Relative Prices of Computers and Semiconductors, 1960-2005: 

Relative Prices of Computers and Semiconductors, 1960-2005

Slide7: 

Semiconductor Roadmap Acceleration

Relative Prices of Computers, Central Office Switching Equipment, and Prepackaged Software, 1960-2005: 

Relative Prices of Computers, Central Office Switching Equipment, and Prepackaged Software, 1960-2005

Relative Prices of Computers, Communications, Electric Components, and Software and Computer Services, 1960-2005: 

Relative Prices of Computers, Communications, Electric Components, and Software and Computer Services, 1960-2005

Role of Information Technology:IT Prices, Investment, and Productivity: 

Role of Information Technology: IT Prices, Investment, and Productivity Capital Contribution by Type: Computers, Communications Equipment, and Software. Capital Contribution to Economic Growth: IT versus Non-IT Capital Services.

Capital Input Contribution of Information Technology in the U.S.: 

Capital Input Contribution of Information Technology in the U.S. Average annual percentage growth rates, weighted by income shares. Annual Contribution (%)

Capital Input Contribution of Information Technology in Japan: 

Capital Input Contribution of Information Technology in Japan Average annual percentage growth rates, weighted by income shares. Annual Contribution (%)

-Comparison between the U.S. and Japan-Capital Input Contribution of Information Technology: 

-Comparison between the U.S. and Japan- Capital Input Contribution of Information Technology Average annual percentage growth rates, weighted by income shares. Annual Contribution (%)

Decomposition of IT Capital Input Contribution in Japan: 

Decomposition of IT Capital Input Contribution in Japan Average annual percentage growth rates, weighted by income shares. Annual Contribution (%)

IT Investment and Productivity Growthin the U.S. and Japan: 

IT Investment and Productivity Growth in the U.S. and Japan Average Labor Productivity Growth: Capital Deepening, Labor Quality, TFP. Total Factor Productivity: IT-Production versus Non-IT Production. Sources of Economic Growth: Capital Input, Labor Input, and TFP.

Productivity Contribution of IT Producing Industries in the U.S.: 

Productivity Contribution of IT Producing Industries in the U.S. Average annual percentage growth rates, weighted by Domar weights. Annual Contribution (%)

Productivity Contribution of IT Producing Industries in Japan: 

Productivity Contribution of IT Producing Industries in Japan Average annual percentage growth rates, weighted by Domar weights.

-Comparison between the U.S. and Japan- Productivity Contribution of IT Producing Industries in the U.S. and Japan: 

-Comparison between the U.S. and Japan- Productivity Contribution of IT Producing Industries in the U.S. and Japan Average annual percentage growth rates, weighted by Domar weights.

-Comparison between the U.S. and Japan- Productivity Contribution of Non-IT Manufacturing in the U.S. and Japan: 

-Comparison between the U.S. and Japan- Productivity Contribution of Non-IT Manufacturing in the U.S. and Japan Average annual percentage growth rates, weighted by Domar weights.

-Comparison between the U.S. and Japan- Productivity Contribution of Wholesale and Retail Trade in the U.S. and Japan: 

-Comparison between the U.S. and Japan- Productivity Contribution of Wholesale and Retail Trade in the U.S. and Japan Average annual percentage growth rates, weighted by Domar weights.

-Comparison between the U.S. and Japan- Productivity Contribution of Communications in the U.S. and Japan: 

-Comparison between the U.S. and Japan- Productivity Contribution of Communications in the U.S. and Japan Average annual percentage growth rates, weighted by Domar weights.

-Comparison between the U.S. and Japan- Productivity Contribution of Finance and Insurance in the U.S. and Japan: 

-Comparison between the U.S. and Japan- Productivity Contribution of Finance and Insurance in the U.S. and Japan Average annual percentage growth rates, weighted by Domar weights.

Industry Productivity Growth in the U.S., 1960-2000: 

Industry Productivity Growth in the U.S., 1960-2000 Note: Industries sorted by productivity growth.

Industry Productivity Growth in the U.S., 2000-2004: 

Industry Productivity Growth in the U.S., 2000-2004 Note: Industries sorted by productivity growth.

Industry Productivity Growth in Japan, 1960-2000: 

Industry Productivity Growth in Japan, 1960-2000 Note: Industries sorted by productivity growth.

Industry Productivity Growth in Japan, 2000-2004: 

Industry Productivity Growth in Japan, 2000-2004 Note: Industries sorted by productivity growth.

Industry Contributions to Productivity in the U.S., 1960-2000: 

Industry Contributions to Productivity in the U.S., 1960-2000 Note: Industries sorted by productivity contribution.

Industry Contributions to Productivity in the U.S., 2000-2004: 

Industry Contributions to Productivity in the U.S., 2000-2004 Note: Industries sorted by productivity contribution.

Industry Contributions to Productivity in Japan, 1960-2000: 

Industry Contributions to Productivity in Japan, 1960-2000 Note: Industries sorted by productivity contribution.

Industry Contributions to Productivity in Japan, 2000-2004: 

Industry Contributions to Productivity in Japan, 2000-2004 Note: Industries sorted by productivity contribution.

Sources of Economic Growth in the U.S., 1960-2004: 

Sources of Economic Growth in the U.S., 1960-2004 Annual Contribution (%)

Sources of Economic Growth in Japan, 1960-2004: 

Sources of Economic Growth in Japan, 1960-2004

-Comparison between the U.S. and Japan- Sources of Economic Growth, 2000-2004: 

-Comparison between the U.S. and Japan- Sources of Economic Growth, 2000-2004

Sources of Growth in Industry Output in the U.S., 1977-2000: 

Sources of Growth in Industry Output in the U.S., 1977-2000 Note: Industries sorted by output growth

Sources of Growth in Industry Output in Japan, 1977-2000: 

Sources of Growth in Industry Output in Japan, 1977-2000 Note: Industries sorted by output growth

Sources of Labor Productivity Growth in the U.S., 1960-2004: 

Sources of Labor Productivity Growth in the U.S., 1960-2004 Annual Contribution (%)

Sources of Labor Productivity Growth in Japan, 1960-2004: 

Sources of Labor Productivity Growth in Japan, 1960-2004

-Comparison between the U.S. and Japan- Sources of Labor Productivity Growth in Japan, 1995-2000: 

-Comparison between the U.S. and Japan- Sources of Labor Productivity Growth in Japan, 1995-2000

-Comparison between the U.S. and Japan- Sources of Labor Productivity Growth in Japan, 2000-2004: 

-Comparison between the U.S. and Japan- Sources of Labor Productivity Growth in Japan, 2000-2004

Sources of Industry Labor Productivity Growth in the U.S., 1977-2000: 

Sources of Industry Labor Productivity Growth in the U.S., 1977-2000 Note: Industries sorted by ALP growth

Sources of Industry Labor Productivity Growth in Japan, 1977-2000: 

Sources of Industry Labor Productivity Growth in Japan, 1977-2000 Note: Industries sorted by ALP growth

Economics on Internet Time: The New Research Agenda: 

Economics on Internet Time: The New Research Agenda  Modeling IT and the semiconductor industry: permanent versus transitory contributions to economic growth. The Solow Paradox -- we see computers everywhere but in the productivity statistics -- versus the Information Age. Equity Valuations and Growth Prospects: accumulation of intangible assets versus irrational exuberance. Widening Wage Inequality:capital-skill complementarity versus skill-biased technical change.