Researchers in a large empirical literature find significant relationships between computers and labor productivity, but the estimated size of that relationship varies considerably. In this paper, we estimate the relationships among computers, computer networks, and plant-level productivity in...

This paper explores the evolution of wages along the life-cycle of U.S. manufacturing plants. Real wages start out low for new plants, and increase along with productivity as plants survive and age. As plants experience productivity decline and approach exit, real wages fall. However, for...

Shifts in the production frontier occur because of changes in technology. A model of how a firm learns to use the new technology, or how it adapts from the first production frontier to the second, is suggested. Two different adaptation paths are embodied in a translog cost function and its...