This chapter provides new estimates of the effects of ICT investments on total labour demand in 19 OECD countries over the early 1990-2012. The findings suggest that ICT investments have no effects on labour demand in the long run. In the short run, however, due to sluggish adjustments in...

A theory of a wealth maximizing, capital accumulating, price taking firm facing adjustment costs and operating in the presence of disembodied and price-induced technical progress is developed. The testable implications of the extended theory are derived under mild assumptions and are thus...