ABSTRACT
Information technology (IT) has become important to the very survival of organizations. While it is possible that the slowdown may have been caused by a variety of reasons other than IT-related phenomena, the possibility that IT may be one of reasons for this slowdown has led researchers to attempt to extract a measure of the value of IT in the production of goods and services. Productivity analysis of IT can be conducted at an economy, industry, firm or process level. While economy- and industry-level analyses may confound results due to aggregation of data and heterogeneity of units of analysis, process-level analyses may suffer from other equally serious problems such as insufficient sample size and the validity in the generalization of results. One way to empirically elicit productivity contribution of inputs is to assume a functional form for the technology that transforms inputs into outputs.
