Researchers from Federal Reserve Bank Detail Findings in Information Technology (Information Technology and Returns To Scale): Information Technology

2024 AUG 15 (NewsRx) -- By a News Reporter-Staff News Editor at Information Technology Daily -- Current study results on Information Technology have been published. According to news reporting originating from New York City, New York, by NewsRx correspondents, research stated, “What are the implications of the dramatic fall in IT prices for aggregate technology? When firm-level technologies are continuously differentiable , a factor price shock leads to ( i ) a substitution between factors and / or ( ii ) an endogenous response of returns to scale.”

Our news editors obtained a quote from the research from Federal Reserve Bank, “The second channel is governed by the output elasticity of relative factor demand. Using detailed firm-level data from France , we estimate this elasticity to be positive for IT factor demand.”

According to the news editors, the research concluded: “A quantitative exercise accounting for both technological channels shows that falling IT prices can explain much of the changes in concentration and the composition of aggregate labor share in France.”

This research has been peer-reviewed.

For more information on this research see: Information Technology and Returns To Scale. American Economic Review, 2024;114(6):1815-1815. American Economic Review can be contacted at: Amer Economic Assoc, 2014 Broadway, Ste 305, Nashville, TN 37203, USA.

The news editors report that additional information may be obtained by contacting Danial Lashkari, Federal Reserve Bank, New York, NY 10045, United States. Additional authors for this research include Arthur Bauer and Jocelyn Boussard.

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