Handbook on the Economics of the Internet
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Handbook on the Economics of the Internet

Edited by Johannes M. Bauer and Michael Latzer

As the single most important general purpose technology of recent times, the Internet is transforming the organization, competitive structure and business models of the private, the public and non-profit sectors. In 27 original chapters, leading authors discuss theoretical and applied frameworks for the study of the economics of the Internet and its unique economics as a global information and communications infrastructure. They also examine the effects of the Internet on economic transactions (including social production, advertising, innovation, and intellectual property rights), the economics and management of Internet-based industries (including search, news, entertainment, culture, and virtual worlds), and the effects of the Internet on the economy at large.
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Chapter 6: The Internet and productivity

Carol Corrado and Bart van Ark


The subtleties of how the Internet impacts productivity growth, once a boost to investment concludes, are not entirely evident in macroeconomic data and traditional methods of accounting for the contribution of information and communication technology (ICT) to economic growth. ICT investments make the Internet and wireless connectivity possible, and new technologies for high-speed digital communication (as opposed to computing per se) give rise to new possibilities that impact how firms do business and how households use time. How are these changes reflected in economic growth and productivity? In this chapter we will address how the growth in digital communication technology – particularly the Internet – has impacted productivity and living standards from a national and international point of view.

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