Chapter 10 - Is the United States Becoming an Information Economy?

Abstract

Baumol and his team of economists have concerned themselves with the study of productivity in national economies. In the book in which the selection below is drawn, they look at the role of technology, service sector, and information as sources of insight in explaining why various national economies experience increases or flat levels of productivity. In the process of doing that, they had to concern themselves with the question of the role of information. They provide an explanation-linked to issues of productivity-as to how advanced economies are evolving and the effects on productivity. The first two authors-economists at Princeton-and the third, also an economist, but at New York University, continue the line of research begun by Machlup.