Can IT be Japan's savior?

Fumio Hayashi, Koji Nomura

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

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 [Hayashi, F., Prescott, E.C., 2002. The 1990s in Japan: A lost decade. Rev. Econ. Dynam. 5, 206-235], 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 per capita GDP, Japan needs to direct 10% of private total hours to the IT sector.

Original languageEnglish
Pages (from-to)543-567
Number of pages25
JournalJournal of the Japanese and International Economies
Volume19
Issue number4
DOIs
Publication statusPublished - 2005 Dec

Fingerprint

Japan
European Community
macroeconomics
economy
performance

Keywords

  • Growth model
  • IT
  • Japan
  • TFP

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Can IT be Japan's savior? / Hayashi, Fumio; Nomura, Koji.

In: Journal of the Japanese and International Economies, Vol. 19, No. 4, 12.2005, p. 543-567.

Research output: Contribution to journalArticle

Hayashi, Fumio ; Nomura, Koji. / Can IT be Japan's savior?. In: Journal of the Japanese and International Economies. 2005 ; Vol. 19, No. 4. pp. 543-567.
@article{4925cc1b1a114cb7a0ee744f0df8d088,
title = "Can IT be Japan's savior?",
abstract = "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 [Hayashi, F., Prescott, E.C., 2002. The 1990s in Japan: A lost decade. Rev. Econ. Dynam. 5, 206-235], 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 per capita GDP, Japan needs to direct 10{\%} of private total hours to the IT sector.",
keywords = "Growth model, IT, Japan, TFP",
author = "Fumio Hayashi and Koji Nomura",
year = "2005",
month = "12",
doi = "10.1016/j.jjie.2005.10.002",
language = "English",
volume = "19",
pages = "543--567",
journal = "Journal of the Japanese and International Economies",
issn = "0889-1583",
publisher = "Academic Press Inc.",
number = "4",

}

TY - JOUR

T1 - Can IT be Japan's savior?

AU - Hayashi, Fumio

AU - Nomura, Koji

PY - 2005/12

Y1 - 2005/12

N2 - 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 [Hayashi, F., Prescott, E.C., 2002. The 1990s in Japan: A lost decade. Rev. Econ. Dynam. 5, 206-235], 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 per capita GDP, Japan needs to direct 10% of private total hours to the IT sector.

AB - 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 [Hayashi, F., Prescott, E.C., 2002. The 1990s in Japan: A lost decade. Rev. Econ. Dynam. 5, 206-235], 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 per capita GDP, Japan needs to direct 10% of private total hours to the IT sector.

KW - Growth model

KW - IT

KW - Japan

KW - TFP

UR - http://www.scopus.com/inward/record.url?scp=29744452573&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=29744452573&partnerID=8YFLogxK

U2 - 10.1016/j.jjie.2005.10.002

DO - 10.1016/j.jjie.2005.10.002

M3 - Article

VL - 19

SP - 543

EP - 567

JO - Journal of the Japanese and International Economies

JF - Journal of the Japanese and International Economies

SN - 0889-1583

IS - 4

ER -