Yes. We construct a measure of aggregate technology change, controlling for imperfect competition, varying utilization of capital and labor, and aggregation effects. On impact, when technology improves, input use falls sharply, and output may fall slightly. With a lag of several years, inputs...

We argue that unmeasured investments in intangible organizational capital—associated with the role of information and communications technology (ICT) as a ‘general purpose technology’—can explain the divergent U. S. and U. K. TFP performance after 1995. GPT stories suggest that measured...