Language:
English
Pages:
1 Online-Ressource (24 Seiten)
Publ. der Quelle:
Amsterdam : Elsevier, 2025
Angaben zur Quelle:
171
DDC:
300
Keywords:
Digitalization
;
Elasticity of substitution
;
Productivity
;
Endogenous technology choice
;
Technology frontier
;
Task-based production
;
Sozialwissenschaften
;
Wirtschaft
Abstract:
How does digitalization transform the macroeconomic production function? Using a model where firms can choose their technology, we find that sectors with more digital capital exhibit a higher elasticity of substitution between value added and intermediate inputs and between capital and labor. This shift in the elasticity of substitution is consistent with a higher complementarity of input-specific technologies on the technology frontier. We further show that the link between technological complementarity and digital intensity can be rationalized using a task-based approach. Out of the three types of digital capital, only the levels of information technology and software/databases have a significant impact on the production function, whereas communication technology has no effects. We also find that digital technical change in value added is Hicks-neutral.
Abstract:
Peer Reviewed
DOI:
10.1016/j.euroecorev.2024.104896
URN:
urn:nbn:de:kobv:11-110-18452/33579-5
URL:
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