CHAPTER 4 - A METHODOLOGY FOR MEASURING THE PRODUCTIVE CAPACITY OF INFORMATION TECHNOLOGY CAPITAL

This chapter first describes the model used in this dissertation to measure the role of IT in growth. The growth accounting framework presented earlier (section 3.1.2) is further developed to measure the returns to IT capital stock and its contribution to output and labor productivity growth. The second section defines the variables used in this analysis and the way these were constructed from different data sources. Finally, the last section describes the data trends at the national, industry and state levels.