This paper examines the underpinnings of the successful performance of the US economy in the late 1990s. Relative to the early 1990s, output growth has accelerated by nearly two percentage points. We attribute this to rapid capital accumulation, a surge in hours worked, and faster growth of...

The contemporary framework for productivity measurement presented in this volume focuses on the impact of information technology on economic growth. The remarkable behavior of information technology prices provides the key to the resurgence of productivity growth in the USA and the world economy.