Can IT be Japan's savior?
By: Fumio Hayashi, Koji Nomura.
Contributors: Nomura, Kōji, 1971-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11749; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11749.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Information technology -- Economic aspects -- Japan.; Japan -- Economic conditions -- 1989-
Description: "This paper constructs a multi-sector model to take explicit account of the very sharp change in the relative price between non-IT and IT goods.  The model is calibrated to the Japanese economy, and its solution path from 1990 on is compared to Japan's macroeconomic performance in the 1990s.  Compared to the one-sector analysis of Japan in the 1990s in Hayashi and Prescott (2002), our model does slightly better or just as well in accounting for Japan's output slump and does worse in accounting for the capital-output ratio.  We also show that, to revive a 2% long-term growth in percapita GDP, Japan needs to direct 10% of private total hours to the IT sector"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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