| Abstract: |
Existing indicators of technical change are plagued by shortcomings. I present
here new measures based on books published in the field of technology that
resolve many of these problems and use them to identify the impact of
technology shocks on economic activity. They are positively linked to changes
in R&D and scientific knowledge and capture the new technologies’
commercialization dates. Changes in information technology are found to be
important sources of economic fluctuations in the post-WWII period and total
factor productivity, investment and, to a lesser extent, labor are all shown
to increase following a positive technology shock. |