Was Y2K Behind the Business Investment Boom and Bust? (ICPSR 1277)
Version Date: Apr 18, 2003 View help for published
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Kevin L. Kliesen, Federal Reserve Bank of St. Louis
https://doi.org/10.3886/ICPSR01277.v1
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During the latter part of the 1990s, United States economic growth was boosted by sizable increases in business purchases of information processing equipment and software, otherwise known as high-tech capital goods. Beginning in 2000, though, firms began to curtail these expenditures. By 2001, high-tech and other forms of business investment were falling sharply. Indeed, much of the downturn in the growth of United States economic activity can be traced to the sharp decline in investment spending. Several explanations have been offered, from the acceleration in labor productivity -- the so-called "New Economy" story -- to the stock market surge and subsequent collapse. One explanation that has not been explored in much detail is the surge in business purchases of hardware and software in preparation for the century data change (Y2K). Because many information processing systems and much of the hardware and software were not Y2K-compliant as late as 1998, it was thought that business investment in high-tech equipment and software would increase appreciably to fix this problem. Although solid Y2K spending data are lacking, the evidence presented in this paper indicates that the magnitude and timing of Y2K-related expenditures make it unlikely that the investment boom and bust was a Y2K event.
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(1) The file submitted is the data file, 0301kkd.xls. (2) These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.
Original Release Date View help for Original Release Date
2003-04-18
Version History View help for Version History
- Kliesen, Kevin L. Was Y2K Behind the Business Investment Boom and Bust?. ICPSR01277-v1. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2003-04-18. http://doi.org/10.3886/ICPSR01277.v1
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These data are flagged as replication datasets and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.
The public-use data files in this collection are available for access by the general public. Access does not require affiliation with an ICPSR member institution.