Two technological revolutions

Boyan Jovanovic, Peter L. Rousseau

    Research output: Contribution to journalArticlepeer-review


    The IPOs of the Electricity/Internal Combustion revolution created more lasting value than the IPOs of the IT revolution. Stock-market data point to two explanations for this. First, computer prices have been falling much faster than did those of electricity and internal combustion in the 1890-1930 period, and so the value of each generation of computerintensive entrants is reduced by later entrants. And, second, the pre-1973 vintages reacted to the microcomputer relatively quickly, perhaps because the threat of being taken over is now higher than it was 70-100 years ago.

    Original languageEnglish (US)
    Pages (from-to)419-428
    Number of pages10
    JournalJournal of the European Economic Association
    Issue number2-3
    StatePublished - 2003

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)


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