Many recent papers, following Gali (1999), have found a negative response of employment to a positive technology shock identified as a permanent shock to labor productivity, contradicting the prediction of standard RBC models. In a recent paper, Christiano, Eichenbaum and Vigfusson (2003) get a...

New information and communication technology can be used to improve the productivity of public services and the responsiveness of government. However, as this paper suggests, without substantial re-engineering of the organisational relationship to the public, IT on its own will achieve little....