A Primer on Internet Economics

DePrince Jr., Albert E.; Ford, William F.
October 1999
Business Economics;Oct99, Vol. 34 Issue 4, p42
Academic Journal
This paper assesses the impact of the Internet on the structure and growth potential of the U.S. economy. It begins with a review of recently compiled data on the extent to which the Internet is contributing to the economy's overall output and employment. It then examines the Internet's microeconomic impact on traditional channels of production and distribution across various industries. The paper identifies and discusses some basic factors determining the sectoral rate of diffusion of Internet activities. It then presents a macroeconomic analysis of the Internet's impact on the economy's productivity, price stability and, hence, its noninflationary growth potential, i.e. its NAIRU. It closes with a business economists checklist of Internet issues facing his/her employer.


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