The evidence on U.S. investment in high-tech equipment and laborproductivity in the 1990s is briefly reviewed and some implicationsdiscussed. First, capturing the role of information technologies has raiseda number of important measurement issues, which have led to a change in theconstruction of aggregate real series in the U.S. national accounts, such asreal GDP. Second, the recent period provided an important confirmation fortraditional neoclassical theories of business investment and productivity.Third, there is a discussion of what type of theoretical and empiricalmodels of economic growth are likely to prove helpful in the future.
