What’s Spurious, What’s Real? Measuring the Productivity Impacts of ICT at the Firm-Level

Hempell, Thomas

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URL: http://ub-madoc.bib.uni-mannheim.de/403
URN: urn:nbn:de:bsz:180-madoc-4031
Document Type: Working paper
Year of publication: 2002
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: L80 C23 C81 D24 ,
Subject headings (SWD): Deutschland , Produktivität , Informationstechnik , Kommunikationstechnik , Dienstleistungsbetrieb
Abstract: In order to assess the productivity effects of information and communication technologies (ICT), regressions based on cross–sectional firm–level data may yield unreliable results for the commonly employed production function framework. In this paper, various estimation biases and econometric strategies to overcome their sources are discussed. The effects are illustrated on the basis of a representative set of panel data for German service firms. The application of a suited SYS–GMM estimator yields evidence for significant productivity effects of ICT which are substantially smaller though than those suggested by cross–section or pooled OLS estimates.
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