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Hyunbae Chun and Sung-Bae Mun
''The Structure of Adjustment Costs in Information Technology Investment''
( 2005, Vol. 5 No.4 )
We examine the pattern of information technology (IT) capital adjustment using data from U.S. industries. Using the gap between actual and desired IT capital stocks, we estimate the shape of the adjustment cost function in IT investment. Both ordinary least squares and nonparametric regression estimates support irreversibility in IT investment.
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
O3 - Technological Change; Research and Development: General
Manuscript Received : Apr 27 2005 Manuscript Accepted : Jul 14 2005

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