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Macroeconomics Commons

Open Access. Powered by Scholars. Published by Universities.®

University of Pennsylvania

2000

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Full-Text Articles in Macroeconomics

Beyond Computation: Information Technology, Organizational Transformation And Business Performance, Erik Brynjolfsson, Lorin M. Hitt Jan 2000

Beyond Computation: Information Technology, Organizational Transformation And Business Performance, Erik Brynjolfsson, Lorin M. Hitt

Operations, Information and Decisions Papers

To understand the economic value of computers, one must broaden the traditional definition of both the technology and its effects. Case studies and firm-level econometric evidence suggest that: 1) organizational "investments" have a large influence on the value of IT investments; and 2) the benefits of IT investment are often intangible and disproportionately difficult to measure. Our analysis suggests that the link between IT and increased productivity emerged well before the recent surge in the aggregate productivity statistics and that the current macroeconomic productivity revival may in part reflect the contributions of intangible capital accumulated in the past.