CHAPTER 5 - EMPIRICAL RESULTS

This chapter describes the empirical results from the analysis presented in chapter 4. The sections 5.1 and 5.2 report evidence on the returns to IT capital stock and the “excess” return hypothesis, respectively. Then, in section 5.3, the contribution to output growth of IT capital is estimated for each state between 1977 and 1997. Section 5.4 describes the results regarding the labor productivity growth contribution of IT capital, by state. Finally, section 5.5 summarizes findings and draws the comparison with other studies.