The House on Clydesdale Lane :: English Literature Essays

The House on Clydesdale Lane The small townhouse always had the inviting fragrance of freshly cut flowers in the morning and the delicious aroma of my mother's secret recipes in the early evening. Anyone who entered was immediately greeted by the fragrances and found themselves staying a little longer than they planned. The delicate light from my grandmother's antique lamp beckoned sleep and the faded striped cushions on the worn living room couch held many a drowsy head in those days. The inside of the house consisted of rooms that were small and barely separated so that you always knew what was going on in the next room. From the living room, you could see my mother giggling at one of my father's corny jokes as they prepared supper together. In the living room, my older brother was most likely teasing my sister and me and tickling us until we screamed. We played games of "go-fish" and Chinese checkers as we waited for supper to be ready. We always ate dinner together in the dining room that barely separated the kitchen from the living room. The dinner table was a small wooden square that had wobbly legs and shook when one of us laughed. Sometimes trivial arguments took place when my brother would hurl mashed potatoes from his spoon at my sister or me. After dinner, my sister and I raced to see who could make it up the stairs first to put our pajamas on for bed. My dad read stories to us and often told us stories from when he was a boy. It was a warm house. It was warm even in the icy winter months when the heat was turned off at night to save money. My younger sister and I snuggled together in the bed we shared and used our hairbrushes as microphones as we lip-synched the songs on our tiny radio. Sometimes during those nights we played "Candyland' when we were supposed to be asleep—until we were caught. The outside of our house looked much like the rest of the houses in the neighborhood. The peeling green paint flaked off into the small patch of dirt my mother used as a flower garden. The sidewalk was gray and covered with brown hopscotch patterns from the tree bark we used as chalk. The front door had an outside door that had a torn and tattered screen that hung down lifelessly.

Subversive Power of the Theater Revealed in Hamlet an Othello :: The Tragedy of Hamlet Essays

Subversive Power of the Theater Revealed in Hamlet and Othello      Ã‚   Theatrical performance is vital not only to the presentation of Hamlet and Othello, but it is vital to each of the play's respective stories. Several key characters control, manipulate, or script a theatrical performance of their own. Through subtle suggestion and explicit or implicit storytelling, Shakespeare's use of theatrical performance within his own plays underscores the subversive power of the theater. It is no secret that Shakespeare embeds within many of his plays subtle suggestions which were subversive to the thoughts and attitudes at the time. Through the construction of the play within a play, Hamlet subverts the notion of kingship. In the play, without even speaking himself, Hamlet constructs a particular version of reality so chilling that Claudius leaves the theater. While this is obviously due to the startling similarity that Claudius sees between the play and his own life, the subtle idea implied is the idea that royalty can be simplified to nothing more than acting. If the roles of the king and queen can be played so well that Claudius leaves the room, seeing the striking similarity between the play and his life, then there is no reason why kingship itself cannot be acted. This subversively delegitimizes the power of the throne. Moreover, it is only in the scenes related to the mousetrap that Hamlet shows signs of leadership. He says to the players, "Follow him, friends . We'll hear a play tomorrow . . . You could for a need / study a speech of some dozen or sixteen lines / which I would set down and insert in't, could you / not?" (Shakespeare II.2:546-553). He is directing the action, asking the ability of the players and telling them exactly what they should do. The fact that Hamlet, the man who would be king, is a leader only in a performance subverts the idea of leadership being something firmly ingrained within the soul of a human being. Instead, it is replaced with the notion that kingship is not something that can be passed down from generation to generation, but something that can be acted, as if it could be turned on and off at will. The nobles and leaders of a country, then, are not inherently born with power because of their familial origin, but they have the same basis of human experience as the common man, an idea which would've been utterly rejected in Shakespeare's time.

Effect of Communication Barriers and Overcoming These Barriers

Good afternoon, ladies and gentlemen. Thank you, Mr. Chairman for letting me speak. Let me introduce myself before we go to the topic. My name Mrs. Aida as a Public Speaking Trainer. Firstly, I want to explain to all of you what is communication? Communication is a process beginning with a sender who encodes the message and passes it through some channel to the receiver who decodes the message. Communication is fruitful if and only if the messages sent by the sender is interpreted with same meaning by the receiver. If any kind of disturbance blocks any step of communication, the message will be destroyed.Due to such disturbances, managers in an organization face severe problems. Thus the managers must locate such barriers and take steps to get rid of them. There are several barriers that affects the flow of communication in an organization. These barriers interrupt the flow of communication from the sender to the reciever, thus making communication ineffective. It is essential for ma nagers to overcome these barriers. The main barriers of communication are summarized below. â€Å"Ladies and gentlemen,† Firstly let me explain one of communication barriers is Perceptual and Language Differences.Perception is generally how each individual interprets the world around him. All generally want to receive messages which are significant to them. But any message which is against their values is not accepted. A same event may be taken differently by different individuals. For example : A person is on leave for a month due to personal reasons (family member being critical). The HR Manager might be in confusion whether to retain that employee or not, the immediate manager might think of replacement because his teams productivity is being hampered, the family members might take him as an emotional support.Secondly is Information Overload. Managers are surrounded with a pool of information. It is essential to control this information flow else the information is likely to be misinterpreted or forgotten or overlooked. As a result communication is less effective. The next barriers was Time Pressures:  Often in organization the targets have to be achieved within a specified time period, the failure of which has adverse consequences. In a haste to meet deadlines, the formal channels of communication are shortened, or messages are partially given, i. e. , not completely transferred.Thus sufficient time should be given for effective communication. â€Å"Ladies and gentlemen,† Distraction/Noise:  Communication is also affected a lot by noise to distractions. Physical distractions are also there such as, poor lightning, uncomfortable sitting, unhygienic room also affects communication in a meeting. Similarly use of loud speakers interferes with communication. Emotions:  Emotional state at a particular point of time also affects communication. If the receiver feels that communicator is angry he interprets that the information being sent is ver y bad.While he takes it differently if the communicator is happy and jovial (in that case the message is interpreted to be good and interesting). Complexity in Organizational Structure:  Greater the hierarchy in an organization (i. e. more the number of managerial levels), more is the chances of communication getting destroyed. Only the people at the top level can see the overall picture while the people at low level just have knowledge about their own area and a little knowledge about other areas. Poor retention:  Human memory cannot function beyond a limit.One cant always retain what is being told specially if he is not interested or not attentive. This leads to communication breakdown. So, how we as a manager to overcome these barriers of communicate? There are a lot of communication barriers faced these days by all. The message intended by the sender is not understood by the receiver in the same terms and sense and thus communication breakdown occurs. It is essential to deal and cope up with these communication barriers so as to ensure smooth and effective communication. As, in the previous section we have discussed the major barriers of communication.Let’s talk about  how to overcome these barriers of communication. Eliminating differences in perception:  The organization should ensure that it is recruiting right individuals on the job. It’s the responsibility of the interviewer to ensure that the interviewee has command over the written and spoken language. There should be proper Induction program so that the policies of the company are clear to all the employees. There should be proper trainings conducted for required employees (for eg: Voice and Accent training). Use of Simple Language:  Use of simple and clear words should be emphasized.Use of ambiguous words and jargons should be avoided. Reduction and elimination of noise levels:  Noise is the main communication barrier which must be overcome on priority basis. It is essent ial to identify the source of noise and then eliminate that source. Active Listening:  Listen attentively and carefully. There is a difference between â€Å"listening† and â€Å"hearing†. Active listening means hearing with proper understanding of the message that is heard. By asking questions the speaker can ensure whether his/her message is understood or not by the receiver in the same terms as intended by the speaker.Emotional State:  During communication one should make effective use of body language. He/she should not show their emotions while communication as the receiver might misinterpret the message being delivered. For example, if the conveyer of the message is in a bad mood then the receiver might think that the information being delivered is not good. Simple Organizational Structure:  The organizational structure should not be complex. The number of hierarchical levels should be optimum. There should be a ideal span of control within the organization. Simpler the organizational structure, more effective will be the communication. Avoid Information Overload:  The managers should know how to prioritize their work. They should not overload themselves with the work. They should spend quality time with their subordinates and should listen to their problems and feedbacks actively. Give Constructive Feedback:  Avoid giving negative feedback. The contents of the feedback might be negative, but it should be delivered constructively. Constructive feedback will lead to effective communication between the superior and subordinate.Proper Media Selection:  The managers should properly select the medium of communication. Simple messages should be conveyed orally, like: face to face interaction or meetings. Use of written means of communication should be encouraged for delivering complex messages. For significant messages reminders can be given by using written means of communication such as : Memos, Notices etc. Flexibility in meeting the targets:  For effective communication in an organization the managers should ensure that the individuals are meeting their targets timely without skipping the formal channels of communication.There should not be much pressure on employees to meet their targets. Conclusion Communication is a process of exchange of information between two or more people. Barriers that affect the process of communication can be reduced if the presenter and receiver of information to understand the role and duties of each in securing an effective communication process. By ensuring that the principles of communication clear, concise, accurate, complete and politely complied with, will allow this communication to achieve the desired goals.Hence all obstacles and weaknesses in achieving effective communication should be addressed and improved to enhance the importance of communication in everyday life. Overcome barriers to communication within the organization to ensure the free flow of information betw een sender and receiver and for effective communication among employees. Effective communication reduce error rates, reduce conflict and an understanding of and increase the profits of the organization. And we as managers must try their best to avoid communication barriers within the organization for effective business communication.

Educational orientation Essay

According to the journal for American association for counseling and development (2008) and Zweigenhaff and Domhoff (2003) the African Americans value very much education and are ready to make sacrifices to achieve the education qualifications. Though they have that desire and willingness to have a good education background they are faced with a number of challenges that affect their performance in school. According to Rovai et al (2007) African American students as compared to the other students have lower performance standards and this is raising concern because this area has not been given much consideration to determine what could be the actual reasons behind their low grades. Lincoln et al (1990) and Henderson and Sumler (1999) discusses some of the reasons why these students do not perform well as others as to include difficulties to integrate and accept the various people from different cultural backgrounds they encounter in school and where they live. The hip hop culture is also said to contribute to the low grades because more of this students have indulged themselves in weird lifestyles that cannot allow them to have enough time with their studies. As argued in Cross (2005) and Wayne (2005) most of the African American students come from average family background and when they go to school with the white American they are seen by the fellow white students as being inferior which psychologically will affect them in their education as they find that they are discriminated. This creates a gap between them that and limits the way they will associate with the others and their presence in the school is threatened. The other reasons for their low grade as discussed in smiley (2006) include the poverty that they live in that makes them struggle to meet their basic needs and making them lose enough concentration to the education and even at times dropping out of school to try life elsewhere. The other reasons according to Obiakor (2002) and Ashe (2002) leading to low academic performance among the African Americans include the way they select the schools that they go to which might have low standards, having different curriculums that may not cover all the necessary topics and choosing areas of study that they are not competent in and also some of the teaching staff may not be giving them support because they tend to display behavior that show no much concern to their education. How to address the problem. Ogbu (2003) and Wright et al (2001) suggests that the teachers and the schools have a responsibility to encourage and support all the students they have under their care to perform well. He also argues that this will be done by helping the students to change the various negative attitudes they have towards their teachers, other students and the education materials like books. Obiakor et al (2002) suggests that the learning environment needs to be made conducive for all the students so that nobody feels threatened by the other because it will help the students settle in their education. As argued by Allen et al (1998) and Wayne (2005) the parents and guardians are encouraged to give moral support to the students and they should encourage them to develop interest in the religion as it offers psychological support. References A. P. Rovai, Louis B. Gallien, & Helen R. Stiff (2007): Closing the African American achievement gap in higher education. National association for college admission counseling. Retrievedonline http://www. nacacnet. org/PUBLICATIONSRESOURCES/BOOKREVIEWS Alex B. Henderson, Janice Sumler (1999). Freedom’s odyssey Clark Atlanta university press. Allen K, Stelzer, P & Wielkiewicz, M (1998). The ecology of leadership: adapting to challenges of a changing world. The journal of leadership. Bertram D. Ashe (2002). From within the frame. Routledge publishers Charles E. Lincoln, Lawrence H. Mamiya (1990). The black church in the African American experience. Duke university press. Cross T. (2005). The persisting racial gap in college student graduation rates. The journal of higher education. Festus E. Obiakor, Bridgie Alexis ford (2002). Creating successful learning environments for African American learners with exceptionalities. Corwin press Faye Z. Belgrave, KevinW. Allison (2005). African American psychology. Sage publishers. .J. Hale (2001). Learning while black. JHU publishers. Journal of counseling and development by American association for counseling and development vol 79 2008. Ogbu J (2003). Black American students in an affluent suburb: a study of academic disengagement. Lawrence Erlbaum publishers New Jersey. Tavis Smiley (2006): The covenant with black America. Third world press. W. Wayne (2005). African Americans and the color line in Ohio. Ohio university press. R. Zweigenhaft, G. Domhoff (2003). Blacks in the white elite. Rowman and Littlefield. Richard Wright, A. Chapman, Malcolm (2001). Black voices. Signet classic publishers

Step by Wicked Step

STEP BY WICKED STEP Themes  ~ Step By Wicked Step Family relationships Coping with new family members for example Pixie understands that her new stepmother is having as much trouble ‘adjusting’ as she is. Family unity The nucleus of moral values, â€Å"the family unit,† is being invaded by outsiders (‘step’ or ‘steps’) and this causes disharmony. Dealing with adversities Young children and adults may find difficulties dealing with frustrations, fears and sadness. Being happy ‘Life has dealt us one hard blow, there is no reason for us to be unhappy for ever’. For example, Claudia realises it is not fair to hate her new stepmother, Stella.Think long enough before making a decision Richard Harwick made a rash decision to run away and that had changed the lives of his stepfather, mother and sister. Sibling rivalry Resentful step-siblings cause burden and hostility in a home. Coping with change All pain eventually heals and that we have the power to change things for the better. Being brave Characters like Claudia and Pixie are brave as they confess to their own rotten behaviour. Dealing with Separation and Divorce It deals with a social phenomenon that many people are experiencing, the idea of a divorce as somehow horrible.Separation and divorce, and the events leading up to them, interrupts the stability and predictability that children need. STEP BY WICKED STEP Synopsis By Chapter  ~ Step By Wicked Step Chapter 1- Chapter 7 Step By Wicked Step – Chapter 1 It is raining. Mr. Plumley and five pupil from Stagfire School are going to a haunted   house in a minibus. Ralpha, Claudia, Robbo, Collin and Pixie have been picked out by Miss O’Dell and herded into the minibus with Mr. Plumley. When they reach Creepsville, they think it is haunted. The last group tells tales of strange shadows and  footsteps and eerie figures in white gown   melting through the walls.There are no lights and Mr. Plumley is horrified to settle the pupils in pitch dark. They  go upstairs as they pass by oil painted portraits of Harwicks of all ages staring at them. As it is a rainy night, Pixie preferred safety in numbers. They have a rule â€Å"each bedroom is for either girls or boys. † Mr. Plumley does not know the rule. He tells the pupils to settle in while   he goes to look for the housekeeper. Robbo decides to explore two or three more stairs. He finds two more beds and a bathroom. The boys take the present room meanwhile Claudia and Pixie take the other. Colin points at the wall. He insists there is a door on the wall.When there is lightning, all of them see the wall papered door meeting the wall papered wall. As they enter the room, cobwebs indicate no one has been there. A tower off a tower. The shelf, desk and chair are filled with dust. Claudia sees a wooden cow balancing on   three legs. She strokes its nose. Suddenly, she hears a soft sound behind her. Robbo sets a globe of the world to spin on its axis. By looking around, they came to a conclusion that the last child who slept in it came from a rich family. They find out it is a boy’s room. Claudia notices a dusty green album in spidery writing on the cover. Richard Clayton Harwick – My Story.Read  and Weep. They hear the faint rumble of the bus. The other children have arrived. The 5 children rush to their rooms and pretend to be fast asleep. They do not want to miss the chance to read the album. Not many get a chance to peep   into someone else’s life and not many people are brave enough to tell you their story. By the time Miss O’Dell and Mr. Plumley come to the first tower room, they think that the children are fast asleep due to tiredness. Miss O’Dell continues to say that the five children have something in common. Mr. Plumley is puzzled as nothing seemed to be common in the five. Pixie is a trouble maker.Claudia is sensible. Ralph is quick-witted and hardworking unlike Colin who likes to   daydream. Robbo is soccer-mad. As Miss O’Dell goes down, the lights come again. She shuts the tower door leaving the five children who have been listening to their conversation. Step By Wicked Step – Chapter 2 The five children are waiting in an old house for the rest of their school group to arrive. They come across an old manuscript written by a boy who ran away when his mother remarried after his father’s death. Richard’s Story- Master Richard’s father had a fever. His mother tried her best to coax his father to eat something- but it was of no use.Richard asked George the gardener about his father. Richard calls him Mr Digby. Mr Digby did not answer him but hugged him hard instead. Lucy the maid sat by Richard’s bedside. When Richard asked if it was going to be today,she placed her finger on his lips and said â€Å"Hush! Don’t even speak of it. Little Charlotte called out to Richard a nd told him that Papa wanted to see him. He dashed as fast as he could. He came across Reverend Coldstone but did not stop although he was asked to. The reverend was angry. His mother was waiting at the doorway and reminded him not to cry.His father asked him to be good to his mother and sister. His last words were –â€Å"Obey your mother’s wishes to the letter. At the chapel, Mr. Coldstone consoled his mother. Richard heard him say -â€Å"When you are mine†¦Ã¢â‚¬ . Richard studied at Mordanger school. He hated it there. Now he was home. Charlotte realized that Richard hated his stepfather. Richard accuses that Charlotte had forgotten about their father. Charlotte denied it and advised him not to accuse Mr Coldstone as the murderer when their father died of fever. Nevertheless, Richard had decided to leave the three of them. Richard wrote in his diary that he worked in a ship.Whenever he wrote about Mr Coldstone, he refered to him as the ‘black batâ€℠¢. Twice his ship stopped at his hometown and he visited his home only to stand like a trespasser. It had been a long time since Richard had been home. Suddenly, he saw a note on the Captain’s table. He found out that his mother and stepfather had died. Charlotte wrote him a letter. In the letter, Charlotte wrote that things had been difficult as their mother spent a lot of money looking for him and they all suffered Mr Coldstone’s anger. Charlotte married Charles Devere although she did not love him because he had money and was willing to spend it to look for Richard.This would be the only letter from her. Step By Wicked Step – Chapter 3 Claudia’s Story: Green Pyjamas Claudia’s Mum and Dad quarreled a lot. One day, her Dad was gone to Granny’s house. However, he dropped by for tea. Claudia overheard the name â€Å"Stella†. Her Mum and even Granny had a row with Dad. Dad usually met Claudia at Granny’s. She missed her Dad so mu ch. The times spent with her Dad kept flooding back. She wanted things back the way they used to be. For the first time, Claudia had a separate Christmas. Later, she was introduced to Stella who was just plain and mousy. Claudia thought her mum was a whole lot better-looking than Stella.Claudia was rude when they went for a walk. Once back, they quarreled and the next day, Dad moved out of Granny’s house straight into with Stella. Claudia met her Dad off and on. Stella stayed out of it. She only made some light conversation with Claudia like asking about her friends and school. Those moments she would be thinking of her mum doing the house chores. After talking to her friend, Shreela, Claudia stopped blaming Stella. Dad and Stella arranged a party for their friends. Claudia was sent there for the day. Politely, she excused herself from the party and stayed in her room. Stella was relieved.Out of curiosity, Claudia decided to eavesdrop. She wore the green pyjamas given by Stel la as it was the exact shade of green of the giant fern. She sat beside the fern and listen to everything the adults downstairs were talking. The guests spoke about everything except about Mum, Dad, Stella or Claudia. Nobody praised Stella for the food nor even spoke to her. Claudia found that very rude as her Mum was not there. Claudia, unable to stand the treatment Stella was getting, made a grand appearance at the party and thanked Stella for the beautiful pyjamas she had brought for her. Finally, everyone started noticing Stella.As for Claudia and Stella, this was the starting point. Stella would teach Claudia how to quilt, read maps, change electric plugs and how to skate. Step By Wicked Step – Chapter 4 Colin describes his stepfather whom he calls dad. He has thought of him as his biological father all the while. His dad looks like him. His dad has dark hair with some grey patches around his ears. His dad used to roll his own cigarettes out of tobacco in a tin. His dad calls him by many nick names- Col, Collie, Sonny-boy, Buster, Mr Bluebird. Colin’s mum works in a shop. His dad walks him to school and back.His dad got him his tea and took him to the park. At the park, he used to swing as high as the bar, he swings back in such a way that his dad would call him –The Bluebird of Happiness. Then, Colin’s mum took him and moved away. It happened when Colin’s father had gone to spend a day with his sister. Two friends of his mum came with a van and packed everything. Then they went off. At first, he thought his dad will join them later. Colin was not happy- school mates would snigger when he did not understand things. Mum found a job at a canteen. She would be busy doing household chores when she came home.Mum was too busy to listen to him. He compared her with his dad- his dad used to talk to him and remembered names of his friends and teachers. Colin asked his mother many times about his dad. He wanted to know when his da d will come home. His mother did give him a hint about his father not having a proper job. He realized later that his mother did not leave any clues for his dad to follow. He then wrote a letter to his dad. But there was no reply. Every night, Colin would take the tobacco tin out of the toe of his boot and put it under his pillow. Then, he would hum his favourite song which was also his dad’s favourite.He would stay awake for hours talking to his dad. He pretended that his dad was there. Colin said that it was as if his mother thought that whatever is happening is actually happening only to her. Then one day when he returned home from school, he realized that his mum had thrown away his boots. The boots were too small for him but she did not know that there was a tobacco tin hidden in there. He did not bother to tell her because she wouldn’t have liked it. It has been five years, eight months and seven days and Colin still remembers hit dad. He secretly writes his dadà ¢â‚¬â„¢s name and his old address on the forms at school.Colin also tries to save money- he does three paper rounds. He will not try to look for his dad now- perhaps someday when he has enough money. Colin hums slowly and when asked to sing, he says that he is saving the words till he finds his dad. It was his favourite song- The Bluebird of Happiness. His friend Ralph consoled him by saying that someday Colin will find his dad. Step By Wicked Step – Chapter 5 Ralph’s Story: A Tale of Three Stepmothers Ralph has two brothers, two half-brothers, one half-sister, three stepbrothers, one stepsister,three stepmothers, one stepfather, two step-grandmothers and a step-grandfather.Living in a big family is no joke. After school on Mondays and Thursdays, he goes directly to Dad’s place. His mum or his step dad, Howard sends him. On Tuesdays, Wednesdays and Fridays, he goes straight to his Mum’s place. At times, he will be lost not knowing where to go. The lunchbo xes help. M for Mickey Mouse and Mum, D for Dumbo and Dad. If he is lost, he has to look at his lunch box to confirm his destination. Edward and George are his brothers. The boys liked Annabel, stepmother No. 1. The only problem was she never left the boys alone with their dad. Edward and George hated this.Dad and Annabel spent all their time kissing and cuddling. Annabel was always on a diet. She disapproved of coffee. So the boys had to drink Dandelion tea every morning. She loved to read out her star sign forecast in the mornings and again in the evenings. Sometimes, she even tried to look at Edward and George to tell their aura. However, the boys would deny anything she said. Yet, their dad would not feel embarrassed. One day, Brandy, Ralph’s cat was sent over as their Mum was varnishing the hall. The three boys took Brandy in a cage. Edward had made it from a broken milk bottle crate and bits of wire.Annabel was annoyed and blamed them to be cruel as Brandy did not have room to breathe. Dad distracted her by pointing out that they were out of bread. Annabel insisted in baking. The poor boys were starving to death. So, they went to the shops. They boys ate three large loaves and before they came home, they brushed away the crumbs. Dad was praising of how the dough had risen. When Annabel left it on the table, Brandy leapt up on the table and sniffed the dough. Then, Brandy lifted its paw and patted the dough. Next, Brandy curled himself comfortably into the dough. Annabel went mad. Dad tried to stick up for Brandy.The spell between Annabel and Dad was broken. In the end, Annabel ran off with someone and Dad searched high and low to get the divorce papers signed. The boys did not miss her as she was more of dad’s girlfriend than a real stepmother. Dad then focused his attention on Janet, who was more keen on rules. However, Dad liked it. Edward and George did not mind as they were able to spend ample time with Dad. On the other hand, Janet was busy rushing her children to the doctors, dentist and school. Janet’s own children, Tom, Joe and Doug and Ann moved in with the three boys. Tom and Ann could get along with Ralph but not Joe and Doug.Mum and Howard though Janet was wonderful. Janet could draw up proper schedule and Mum hardly bothered as she found Janet was easy to deal with. Due to the rules, Ralph knew he could pick up rules in no time if he was ever anywhere. Finally Janet left. She got fed up with Mum and Dad as they were taking advantage of her. Dad kept fixing up work trips on the days the boys were there. He told Janet that she had four children and another three would not make any difference. Mum started sneaking Victor’s romper suit hoping that Janet would come across them and get the stains out before sending them back. So, Janet left.The boys had a wonderful time after that. Unfortunately, it was only for a short period of time. Stepmother Number 3, Flora, came into the picture. Edward met her lying on Dad’s patio with hardly any clothes on. She had the cheek to tell Edward to cover up as she was enjoying the sun. George met Flora when they went shopping. Flora was dumping treats like strawberries, kiwi fruits, waffles, Belgian chocolates into the trolley. Dad was looking into the wallet, gloomily. Ralph went the next day. When he rang the bell, Flora opened and enquired. Ralph introduced himself. Flora blew her top as she did want to be a nanny.She took Ralph out for a Chinese Dinner and to watch a film. Then she met some friends and went to a coffee bar. At that time, Ralph informed his Dad of their whereabouts. Dad was furious and scolded Flora. Flora was cool and told him not to dump the children on her before checking her schedule. Ralph thought she was wonderful although she did all sorts of terrible things to him. Flora was pregnant and she ate only mint sauce sandwiches. Ralph was worried that his half sister or half brother would not be well taken care off by Flora. She did not know how and Ralph decided to help her out.The others usually teased Ralph. Most probably, Flora would settle in with this family. Step By Wicked Step -Chapter 6 When Pixie's parents divorced, Pixie was allowed to spend two weekends a month at her father's house which he had bought together with Lucy, her stepmother. Her two step sisters , Sophie and Hetty Payne, shared a room while Pixie was given a room to herself, as was agreed by her father. Pixie could not get along well withe her stepsisters and their actions annoyed her. One day, bothe her stepsisters got onvolved in a fight , and this caused Hetty to move into Pixie's room.Pixie was dissapointed as she was not consulted on the matter, and to make the matter worse, her father ingnored her complaints about Hetty moving into her room. Hetty's irritating behaviour also put Pixie's off. One day, while on a family holiday, Pixie had a fight with Sophie over who should occupy the top bunk bed , and both o f them ended up crying. As for Hettym Pixie just could not stand her even though Hetty was closer to her in age. Pixie was also jealous of Hetty as she was everyone's darling due to her good manners and intelligence in mathematics. Pixie then divised aplan to force Hetty out from her room.Intially, she tried to frighten Hetty with ghost story and also burden Hetty with schoolwork so that Hettty would be fed up with her and voluntarily leave her room. However, those trick was failed. Hetty than complained to Lucy. Lucy tried to talk to Pixie but failed. Instead, the two of them end up arguing. Pixie's father appeared then but quickly went out of the room again as he did not want to interfere. Lucy was dissapointed with Pixie for not putting with any effort to integrate and mix with the family. Pixie was dissapointed that there was nothing for her at Lucy's home.After expressing their frustrations and dissapointments, both Lucy and Pixie cried and the made up. Pixie was able to tolera te her stepsisters and Hetty help her with her homework. She also tried to be more sociable at Lucy's home. Step By Wicked Step – Chapter 7 Robbo's parents spilt up when he was only six years old. Robbo's father then moved out from their house and Robbo and his sister, Callie visited him at his place regularly. Robbo's stepfather, Roy moved to their home but Callie disliked him. She also nicknamed him as ‘The Beard' as Roy seemed to interfere with their family affairs.Their mother tthen give a birth to Dumpa, Robbo's half brother. One day, when Roy and their mather had a row, Callie tried to get their parents back together but failed. One day, Robbo's mother had a serious row with Roy over Callie's habit of pushing her bicycle through the narrow space between his car and the bushes beside it as it almost stratched Roy's car. They started shouting each other . Roy was angry as he felt his wife siding with Callie and that neither of them appreciated his effort in sending the kids to school or paying for food. Robbo's mother and Roy's efforts to solve the problem but they ended up arguing. he situation worsen whern Roy decided no to drive callie to school and sledging activities when snow started to fall. He even refused to buy her favourite brand of cerelas as she was not polite and civil to him. The next day, roy decide to clear the shed during the middle of a heavy snowfall with Dumoa following him. Robbo's mother tried to get Dumpa in, but he refused and only listened to Roy. Robbo then suceed in coaxing Dumpa into the house by offering him strawberry rocket ice lolly. From that day onward, their mother was always stuck in the middle as both Callie and Roy were unhappy and upset with each other.She also realised that the only solution to the problem is for her to move out her father's place. Robbo's father then suggested to his ex-wife to go on a holiday with Roy to help them solving the problem. He even offering to take care of Dumpa while there were away. The story ended with Robbo's optimistic view of his family as they can now start afresh. Ralph compared Robbo's story to Richard Harwick's story because his sister, Callie and Richared both did not like their stepfathers and had to leave their family. However, unlike Richard who ran away from his family, Callie tried something different in order to make things work at home.Ralph also mentioned that everyone in their group had tried their best to solve their problems at home. Claudia then put the journal back into its place, but took out Charlotte's little wooden cow, removed a tiny splinter, and gave the little wooden cow to Ralph who thrust it into Collin's bag , hoping that Colin would find his stepfather again. STEP BY WICKED STEP Characters and characterisation  ~ Step By Wicked Step Name of character| Descriptions/ Attributes/ Personality| Robbo| School pupil, sports-mad especially football|Ralph| School pupil, quick-witted, hardworking and occasionally likes to i ntercept impolitely during a conversation| Colin| School pupil, longs to be reunited with his stepdad, dreamy as ‘he drifts through the hours of each school day as if his thoughts were hundreds of miles away’ and this ‘ drove his teachers to despair’| Claudia| Steady, sensible, did not get along well with her stepmother at the beginning| Pixie| Fiery, a good reader, selfish| Richard ClaytonHarwick| Owner of Old Harwick Hall, lost his father at a very young age. His mother remarries the priest, Reverend Coldstone whose wrath Richard cannot stand.He runs away, without knowing that he has made a decision that will change three lives; his stepfather’s, mother’s and sister’s. When he inherits Old Harwick Hall, he has lost his three closest members of the family. | Rev. Coldstone| Richard’s wicked stepfather, strict and cold-hearted| Mr. Plumley| A staff of the school who accompanies the children to Old Harwick Hall| Miss O’ Del l| The school teacher who picks five of the children on a trip after a quick glance at her list. | Mr. Digby| Gardener at the Harwick’s household| Lucy| Maid at the Harwick’s household|Charlotte| Richard Clayton Harwick’s sister. | STEP BY WICKED STEP Moral Values  ~ Step By Wicked Step Family is everything This is the main message in all the five stories from Claudia, Ralph, Colin, Pixie and Robbo. Love is the factor that binds the family together but sometimes the family unit breaks down due to a lack of understanding between parents. Most of the time, children are not prepared for such a situation and this lands them in an awkward and painful situation. It is important to minimize the impact of divorce on children and to make sure they do not feel unwanted or unimportant.Parents must always try to keep the family together despite the breakdown in their relationship. Patience is a virtue It is important to practice a lot of patience in difficult times. No pa rents would want a divorce if they can help it. Hence, everyone affected by a divorce must be patient and tolerant. Richard Clayton Harwick does not show enough patience when he leaves his family because he cannot get along with his step father. As a result of his action, his mother dies of heartbreak and his sister blames him for being selfish and cruel. In Pixie’s story, she does not show much patience towards her step siblings.She refuses to share her bedroom with Hetty. She is also hard headed and argues intensely with her step mother. We must learn to adapt to new situations Children from broken homes have no choice but to learn to adapt to new situations. This may be unfair to the children who seem to be the ‘victim’ of circumstances beyond their control. However, in the five stories told, we learn that adapting is better than resisting although it takes a lot of patience and effort on the children’s part. Claudia shows she is a rational and sensible child to accept her step mother.Ralph, who has three step mothers, gets along with all of them despite their different personalities. Don’t give up hope Colin’s story is the saddest of all. He does not give up hope of one day finding Jack whom he accepts as his own father. He saves all his money and plans to look for his dad when the time is right. Colin is a very determined person despite his young age. He knows what he wants. Robbo also hopes his sister Callie will accept their step father Roy. However, Callie resents Roy and decides to live with her real father in the end.STEP BY WICKED STEP Setting  ~ Step By Wicked Step 1. The haunted house of Harwick. 2. Domestic households of Claudia, Colin, Ralph, Pixie and Robbo. STEP BY WICKED STEP Literary Devices  ~ Step By Wicked Step Simile i. Like someone stepping on stones over a river with water raging on both sides (p. 21) ii. When a great ship strains at the tide, and needs a cabin boy, nobody asks the lad who s peaks as roughly as a gardener’s son, and claims to be Dick Digby, whether his mother knows he’s off to sea. (p. 25) iii. †¦ dressed black as a bat (p. 16) iv.She ( Hetty ) is still wary of me, and I still get on with her that bit better when all the lights are out, and I don’t have to watch her cocking her one side and fiddling with her hair or rolling the cat like a sausage across the downie (p. 103) v. It was like the Arctic. (p 87) vi. Like leftover shoved in a fridge (p. 2) vii. †¦. as narrow as the ones that archers used†¦ (p. 8) viii. †¦over a black and white tiled floor that looked like a huge checkerboard glazed †¦ (p. 4) tight little circle, like campers round a †¦(p. 6) ix. She picked her way†¦.. like someone stepping †¦. (p. 21) x.And I’d just stare down at my plate on my face that said, plain as day, with a look ‘Why should you? ’ (p. 40) Hyperbole Hyperbole is exaggeration. It puts a pictu re into the reader’s mind. Anne Fine occasionally makes a point by overstating an action or object as in the following hyperboles: i. As the driver swung the minibus (p. 1) ii. Just as if the dull-looking binder on the desk was a delicious birthday cake (p. 10) iii. No tears! I would have found obedience†¦. How many nights my pillow would become a flood (p. 17) iv. How many cloudless afternoons I was to water with my private showers (p. 17)Personification Personification is a a figure of speech in which inanimate objects or abstractions are endowed with human qualities or are represented as possessing human form. Anne Fine uses personification to make this novel more dramatic and interesting or to convey a certain mood. By using this literary device, it also helps us to relate more to the object or idea that is being personified because it is easier for us to relate to something with human attributes. i. Flinching as the twisted fingers of trees scraped at the glass (p. 2) ii. And then another flash shot generously across the sky (p. 7) iii.The wind still whistled through the tree, but in the room the silence is palpable (p. 34) Repetition This device is mostly used in two of the vignettes to emphasise on the subject in hand, as shown in the following: i. ‘It isn’t a story,’ said Colin. ‘There isn’t anything to tell. We just went on. ’ (p. 51) ii. ‘There isn’t a story,’ said Colin. (p. 53) iii. ‘There isn’t a story,’ said Colin. ‘We just went on. ’ (p. 56 ) iv. ‘ I’ve told you,’ said Colin. ’There isn’t story. It’s just that, as we went on, I started getting into trouble at school†¦Ã¢â‚¬â„¢ (p. 57 ) v. ‘Dumpa’s the problem’ (pgs 107,112,119 and 125 )

Putting the Enterprise Into the Enterprise System

Davenport’s article â€Å"Putting the Enterprise into the Enterprise System† discusses the pros and cons of Enterprise Systems. These systems gather data—manufacturing, sales, logistics, financial, etc. , and then pull this data into a central warehouse that helps companies make informed business decisions. However, the Article’s main theme is, that while these can be powerful tools for an organization, the adoption of a cookie cutter solution may be counterproductive.The part that most interested me was the Article’s discussion that very often a software system designed by the software experts may, in fact, remove the competitive edge of that company. While we tend to think of computing systems as enhancing operations and making them more efficient through faster communication, automation, removing the need for people, etc. , I had never thought of them as having the potential to remove a company’s competitive advantage.Competitive advantage , of course, is doing something different that makes your company better than the others. The difference, as cited in the Article, is typically the service, speed of delivery, etc. , and not the product itself. If, however, you and your competitor all sign up for the same or similar systems that define your business methods, then you begin to operate the same. Now all you have to compete on is price, which is going to squeeze margins.Of course there is a way around this, as the Article discusses, and that is to customize the system to match your existing processes and differentials so that you get the benefits of the efficiencies where you want them, but still maintain the uniqueness that makes your customers continue to come to you. This Article should be read by any company that is about to embark on the integration of an Enterprise System into their organization.The Article gives a lot of good pointers, particularly on the last page of the items to consider and the need for peopl e who truly understand the company’s methods of operations and DNA to ensure that these carry on even after the software is introduced. For the cost investment of such software, it is vitally important that an organization comes out with a product that makes them better and stronger and doesn’t get pulled down to be just another one of the pack.

IT and Economic Performance: Evidence From Micro Studies

CHAPTER V: IT AND ECONOMIC PERFORMANCE: EVIDENCE FROM MICRO DATA STUDIES By B. K. Atrostic and Ron Jarmin* Micro data—that is, data on individual businesses that underlie key economic indicators—allow us to go behind published statistics and ask how IT affects businesses’ economic performance. Years ago, analyses indicated a positive relationship between IT and productivity, even when official aggregate statistics still pointed towards a â€Å"productivity paradox. Now, such analyses shed light on how varied that relationship is across businesses, and how IT makes its impacts. This chapter focuses on research about businesses based on micro data collected by the U. S. Census Bureau. We highlight the kinds of questions about the use and impact of IT that only micro data allow us to address. Micro data studies in the United States and in other OECD countries show that IT affects the productivity and growth of individual economic units. Specific estimates of the si ze of the effect vary among studies. Researchers comparing manufacturing plants in the United States and Germany, for example, find that in each country investing heavily in IT yields a productivity premium, but that the premium is higher in the United States than it is in Germany. They also find that the productivity premium varies much more for U. S. manufacturers. This greater variability is consistent with the view that the U. S. policy and institutional environments may be more conducive to experimentation by U. S. businesses. What kind of IT investments do U. S. businesses make? Census Bureau data on U. S. manufacturing establishments show that they invest in both computer networks and the kind of complex software that coordinates multiple business processes within and among establishments. About 50 percent of these plants have networks, while fewer than 10 percent have invested in this complex software. Such a wide difference between the presence of networks and * Ms Atrostic (barbara. kathryn. [email  protected] gov) is Senior Economist, and Mr. Jarmin (ron. s. [email  protected] gov) is Acting Director, Center for Economic Studies, U. S. Census Bureau. 61 DIGITAL ECONOMY 2003 complex software in manufacturing, and equally wide-ranging differences in their presence among detailed manufacturing industries, highlight the diversity of IT use among businesses. Plants with networks have higher productivity, even after controlling for many of the plant’s economic characteristics in the current and prior periods. Similar results are found in other OECD countries. Some studies suggest that businesses need to make parallel investments in worker training and revised workplace practices before IT investments yield productivity gains. Careful micro data research shows that the relationship between IT and economic performance is complex. â€Å"IT† emerges as a suite of alternatives from which businesses make different choices. Estimates of the size of the effect, and how IT makes its impact, remain hard to pinpoint. Data gaps make it hard to conduct careful analyses on the effect of IT. Continuing efforts by researchers and statistical organizations are filling some of the data gaps, but the gaps remain largest for the sectors outside manufacturing—the sectors that are the most IT-intensive. More definitive research requires that statistical agencies make producing micro data a priority. What Are Micro Data? Micro data generally contain information about many characteristics of the economic unit, such as plant employment, years in business, share of IT in costs, ways it uses IT, and its economic performance. Micro data exist for both businesses and individuals, and can be developed by private and public organizations. This chapter focuses on research using micro data about businesses that are collected by the U. S. Bureau of the Census. BENEFITS OF MICRO DATA RESEARCH Standard analyses of productivity and similar economic phenomena frequently assume that businesses are identical, at least within an industry, and therefore also respond similarly to changes in economic circumstances. However, it is easy to challenge this assumption simply by observing the variety of businesses in any industry, no matter how narrowly the industry is defined, and how diverse their responses appear to be. Case studies in specific industries repeatedly bear out this observation. Micro data allow us to assess the diversity of businesses and track behaviors such as their entry and exit into an industry. They also allow us to document changes in businesses’ performance, such as employment, sales, and productivity, and see whether those changes are uniform among industries, within industries, or among businesses of given ages, sizes, and so forth. Two decades of research using micro data reveal tremendous variety in the economic characteristics and performance of businesses at any time, and over time. 1 An excellent summary is E. Barltesman and M. Doms, â€Å"Understanding Productivity: Lessons from Longitudinal Microdata,† Journal of Economic Literature, Vol. 38 (September 2000). It reviews research conducted at the U. S. Census Bureau and gives references for reviews of micro data research conducted elsewhere. A detailed report on initial micro data research on productivity is provided in M. Baily, C. Hulten, and D. Campbell, â€Å"Productivity Dynamics in Manufacturing Plants,† Brookings Papers on Economic Activity: Microeconomics 1992. 1 62 DIGITAL ECONOMY 2003 Micro data can paint a clearer picture of how aggregate economic statistics change. They also allow researchers to apply econometric techniques that take account of the kinds of complex relationships that simply cannot be presented in tables or other aggregated formats. Comparing findings from research studies using different data sets allows us to see which estimates appear to be robust, and which ones seem to depend on the specific data we use, and on the specific equations we estimate. RESEARCH REQUIRES GOOD MICRO DATA Micro data research takes advantage of the high-quality information about individual businesses that underlies major economic indicators. The micro data sets typically are large and nationally representative, making it more likely that they capture the tremendous diversity among businesses. 2 Researchers often are able to link data at the micro level across surveys and over time. For example, consider the new information on whether businesses have computer networks, and how they use those networks that was collected in the Computer Network Use Supplement (CNUS) to the 1999 Annual Survey of Manufactures (ASM). The plant-level micro data about computer networks collected in the CNUS can be linked to information about employment, shipments, use of other inputs, etc. , collected about the same plants in the 1999 ASM and to ASMs for other years, and to data that was collected about the same plants in the 1997 Economic Census. Such exact linkages yield much richer information bases than any single supplement, survey, or census alone. When micro data can be linked, researchers also can use econometric techniques to control fo r unobserved characteristics that are specific to an individual plant or business. These techniques allow researchers to have more confidence that findings, such as the effect of IT actually are due to IT and not to related but unmeasured characteristics, such as good management or a skilled work force. The Role of Information Technologies in Business Performance Recent research using micro data generally concludes that IT and productivity are related. Indeed, micro data analyses indicated a positive relationship between IT and productivity when official aggregate statistics still pointed towards a â€Å"productivity paradox. Two recent reviews of plant- or firm-level empirical studies of information technology (including but not limited to computers) and economic performance conclude that the literature shows positive relationships between information technology and productivity. However, specific estimates of the size of the effect vary widely among studies. How IT makes its impact also remains hard to pinpoint. While micro data provide raw material for importan t analyses, they are not a panacea. Researchers must address significant challenges when using existing micro data to analyze questions about the economic performance of businesses. See Z. Griliches, â€Å"Productivity, R&D, and the Data Constraint,† American Economic Review, Vol. 84 No. 1 (March 1994); and Z. Griliches, and J. Mairesse, â€Å"Production functions: The Search for Identification,† NBER Working Paper 5067 (March 1995). 3 2 More information on these surveys is available at http://www. census. gov/eos/www/ebusiness614. htm. 63 DIGITAL ECONOMY 2003 THE ROLE OF IT IN PRODUCTIVITY—A BRIEF SURVEY OF THE LITERATURE Many recent studies use micro data to document and describe the productivity of different kinds of businesses, and to examine its sources. The simple model that suggests productivity growth occurs among all existing plants simply does not fit with what the micro data show. Instead, the micro data show that much of aggregate productivity growth comes about through a much more diversified and dynamic process. Less productive plants go out of business, relatively productive plants continue, and the new entrants that survive are more productive than either. Micro data research on the effect of IT explores how IT fits into this complex picture of business behavior. Dozens of research papers over the last decade examine various facets of the relationship between IT and productivity. Two recent reviews summarizing the current literature on IT and productivity conclude that there is an impact, although there is much variation among studies in the estimated magnitudes of that effect (Dedrick, J. , Gurbaxani, V. , and K. Kraemer, 2003, â€Å"Information Technology and Economic Performance: A Critical Review of the Empirical Evidence,† ACM Computing Surveys, Vol. 35, No. 1, March and Stiroh, K. J. 2002, â€Å"Reassessing the Impact of IT in the Production Function: A Meta-Analysis,† Federal Reserve Band of New York, November). 4 Dedrick et al. (2003) review over 50 articles published between 1985 and 2002, many of which are firm-level studies with productivity as the performance measure. They conclude that firmlevel studies show positive relationships, and that gross returns to information technology investments exceed returns to other investments. They warn against concluding that higher gross returns mean that plants are under-investing in information technology. Most studies do not adjust for the high obsolescence rate of information technology capital, which lowers net returns. Also, total investment in information technology may be understated because most studies measure only computer hardware, but not related labor or software, or costs of coinvention, such as re-engineering business processes to take advantage of the new information technology. Stiroh (2002) reviews twenty recent empirical studies of the relationship between information technology and output and productivity. The studies generally find a positive effect of information technology on output. However, the estimates differ across studies, and the studies differ in many dimensions, including time periods covered and specific estimation techniques used. Stiroh looks for predictable effects of differences in characteristics of the studies, such as time periods, level of aggregation (e. g. , industry, sector, or entire economy), and estimation techniques. He finds that much of the variation across studies in the estimates of the effect of information technology probably reflects differences in characteristics of the studies. 4 Many of those studies, including many studies discussed in this chapter, were conducted at the Center for Economic Studies (CES) at the U. S. Census Bureau. Appendix 5. A describes both CES, a research unit that conducts research and supports the needs of researchers and decision makers throughout government, academia, and business, and some of the major data sources available there for micro data research on the impact of IT. 64 DIGITAL ECONOMY 2003 Stiroh also reports the findings of additional research he conducts using a single industry-level database to estimate many of the different equations used in the studies he reviewed. His research finds that information technology matters, but that even within a single database, estimates of the magnitude of that effect depend on the particular equation that is estimated. Finally, Stiroh notes a potential for publication bias. Because theory predicts a positive relationship between IT and productivity, researchers may tend to report, and editors may tend to accept for publication, only those papers with the â€Å"right† results on the impact of IT. However, as his research demonstrates, estimates are sensitive to both the data used and the particular equation that is estimated. He concludes that information technology matters, but the wide variation in empirical estimates means that much â€Å"depends on the details of the estimation† and â€Å"one must be careful about putting too much weight on any given estimates. † The conclusion that recent studies show a positive effect of information technology stands in contrast to earlier studies, many of which found no relationship. Both Dedrick (2003) and Stiroh (2002) note that the best data available to early researchers suffered from small sample sizes, few or no small firms or plants, and lack of data on information technology investment. These data gaps may be why early micro data studies failed to find a relationship between IT and performance. CAUSE AND EFFECT: DOES USING IT MAKE BUSINESSES MORE PRODUCTIVE? The literature so far yields mixed findings on cause and effect between IT and plant-level economic performance. Early research is limited to manufacturing. The first findings in this area were that more productive plants may be more likely to adopt best practices, including new technologies, and that they are able to afford to do so. However, later research suggests that less productive plants may invest in those technologies, perhaps trying to boost their productivity. 6 Recent research expands the scope of analysis of the effect of IT in the retail sector. It examines the relationship between investments in information technology and two performance measures for retail firms, productivity and growth in the number of establishments. The research finds that, in retail, IT is closely related to productivity grow th, but not to growth in the number of establishments that retail firms operate. 5 R. H. McGuckin, M. L. Streitwieser, and M. E. Doms, â€Å"The Effect of Technology Use on Productivity Growth,† Economic Innovation and New Technology Journal, 7 (October 1998). 6 Stolarick Kevin M. , â€Å"Are Some Firms Better at IT? Differing Relationships between Productivity and IT Spending,† Center for Economic Studies Working Paper CES-WP-99-13, U. S. Census Bureau, Washington, DC (1999); and B. K. Atrostic, and S. Nguyen, â€Å"IT and Productivity in U. S. Manufacturing: Do Computer Networks Matter,† Center for Economic Studies Working Paper CES-02-01, U. S. Bureau of the Census, Washington, DC (2002). M. Doms, R. Jarmin, and S. Klimek, â€Å"IT Investment and Firm Performance in U. S. Retail Trade,† Center for Economic Studies Working Paper CES-WP-02-14, U. S. Bureau of the Census, Washington, DC (2002). 7 65 DIGITAL ECONOMY 2003 Does the Business Environment Matter? —International Comparisons Although researchers have found evidence of the effect of IT on productivity at the micro level across many countries, the effect on aggregate productivity and economic growth has varied across countries. This is true even though IT is universally available. While the United States and a few other economies enjoyed the boom of the late 90s, many European economies experienced sluggish growth. Several explanations have been put forward including differences in the policy and institutional settings across countries, measurement issues, and time lags (micro data research showed positive effects of IT in the United States before aggregate statistics). Some have hypothesized that the U. S. economy was able to make more effective use of the new general-purpose technology of IT because its regulatory and institutional environment permits firms to experiment more. An important component of the U. S. bility in this regard is the efficient reallocation of resources away from firms whose experiments in the marketplace fail, to those whose experiments succeed. The OECD’s Growth Project (Box 5. 1) study found evidence that the Schumpeterian processes of churning and creative destruction (or market selection) yield greater economic effects in t he United States than in other OECD countries. These processes affect aggregate productivity growth as lower productivity firms shrink and exit and higher productivity firms enter and grow. Is it the case that IT has had a greater impact on business performance in the United States because the U. S. policy and institutional environment is more conducive to market selection and learning? Box 5. 1. OECD International Micro Data Initiative No single country has the resources and technical expertise to independently resolve all the measurement issues and fill all the information gaps associated with measuring the impact of IT. The OECD Growth Project provided a comprehensive analysis of the impact of information and communication technology (ICT) on productivity and economic growth in several OECD countries, using aggregate, industry-level, and plant-level data. Based on that project’s success, U. S. Commerce Secretary Evans requested additional micro data research, and provided the OECD with seed money. This new project seeks to build on efforts already under way in several OECD member countries. One facet of the OECD micro data project on ICT is a series of multi-national collaborations, with a small number of countries involved in each collaboration. Each group is developing its own way of reconciling the differences in each country’s existing micro data that are important to comparative studies, such as the sectors covered, the scope of businesses included in each sector, and the specific questions asked. The OECD project also seeks explicitly to foster coordination and collaboration on e-business issues between data producers and data users in each country. Project members are from both the OECD’s Statistical Working Party of the Committee on Industry and Business Environment (largely data users focused on productivity and growth statistics) and the new Working Party on Indicators on the Information Society (largely producers of statistical indicators). 66 DIGITAL ECONOMY 2003 Recent research using micro data from the United States and Germany attempts to address this question. 8 The analysis first compares the differences between various groups (e. g. , young vs. old, or those that invest heavily in IT vs. those that do not) of manufacturing establishments within each country. These differences are then compared across the two countries. This allows the researchers to contrast the impact of IT on economic performance between the two countries. The results suggest that U. S. anufacturing establishments benefit more from investing in IT and are more likely to experiment with different ways of conducting business than their German counterparts even after controlling for several plant specific factors such as industry, age, size, and so on. Figure 5. 1 summarizes results from an analysis of the impact of changing technologies on productivity outcomes. For the analysis, businesses undergoing an episode of high investment are assumed to be actively changing the ir technology. Manufacturers in both countries were grouped according to investment intensity as defined by investment per worker. The researchers examined investment in both general and IT-specific equipment. The core comparison group had no investment. The other two groups—with investment in any equipment, and investment in IT equipment—were split into â€Å"high† and â€Å"low† investment groups at the 75th percentile of the investment intensity distributions. Plants with â€Å"high† investment intensities were those with intensities exceeding at least 75 percent of all other investing plants. These computations were done for both overall investment in equipment (excluding structures) and for IT equipment, giving a combined seven investment intensity categories. Businesses undergoing an episode of high investment intensity can be thought of as actively changing their technologies. The market will reward some of these and punish others. The crux of the analysis summarized in Figure 5. 1 is to first compare the performance of plants across the various investment intensity groups to a baseline of firms with no investment within each country (i. e. , the bars for the listed investment intensity categories in the figure represent the percent difference from the omitted zero investment category for each country). Then the researchers compared the within country differences across the United States and Germany to see in which country the reward for experimentation (as measured by high investment episodes) is highest. Panel A shows that U. S. businesses that invest heavily, both overall and in IT, are much more productive than those that invest little or none at all. The same holds true for Germany, but the productivity premium is much higher in the United States. Panel B shows that U. S. businesses that invest heavily (i. e. are experimenting with new technologies) have more varied productivity outcomes as measured by the standard deviation than do firms that invest little or not at all. This is not the case in Germany. In fact, the German data show that firms that invest intensively have less varied productivity outcomes. This is consistent with the notion that the U. S. policy and institutional environment is more conducive to market experimentation. These results should be viewed with cauti on as they relate to only two countries and there are many factors the researchers do not control for. 8 J. Haltiwanger, R. Jarmin, and T. Schank, â€Å"Productivity, Investment in ICT and Market Experimentation: Micro Evidence from Germany and the U. S. ,† Center for Economic Studies Working Paper CES-03-06, U. S. Bureau of the Census, Washington, DC (2003). 67 DIGITAL ECONOMY 2003 Figure 5. 1. Differences in Productivity Outcomes between Germany and the United States Panel A: U. S. Firms Investing Heavily in IT and Other Capital Have Higher Productivity Premiums 100% % Difference in Mean Productivity Relative to Group with No Investment U. S. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Low / 0 Germany High / 0 Low / Low Low / High High / Low High / High Investment Intensity (Equipment / IT) Panel B: U. S. Firms Investing Heavily in IT and Other Capital Experience More Varied Productivity Outcomes 50% U. S. % Difference in Standard Deviation of Productivity Relative to Group with No Investment Germany 40% 30% 20% 10% 0% -10% -20% -30% -40% Low / 0 High / 0 Low / Low Low / High High / Low High / High Investment Intensity (Equipment / IT) Note: Differences are in logs and are shown relative to a reference group of firm with zero total investment. Source: Haltiwanger, Jarmin and Schank 2003. DOES IT MATTER HOW IT IS USED? Businesses in the United States have used IT for fifty years. Originally, firms that used IT may have had advantage over competitors who did not. But today, simply investing in IT may no longer be enough. The question for economic performance is no longer whether IT is used, but how it is used. 68 DIGITAL ECONOMY 2003 Figure 5. 2. Computer Networks Were Common in U. S. Manufacturing Industries in 1999, But Sophisticated Network Software Was Not 100 90 80 70 60 Plants with Networks Employment at Plants with Networks Plants with Fully Integrated Enterprise Resource Planning Software Percent 50 40 30 20 10 0 G ts ts s s s s s o t es ry ts s al em ic d ru bb er pr od l ts ill re ts uc rie ou en al ill ts ts rie uc te pe uc cc ts N ne uc uc RI iti pm od ne ba tm od st pa uc uc et TU od od Pa la st od tiv hi od od du du pr re lla ac til uc pr to Ap pr ui – ac pr pr od m e FA C od in ce an Te x ar eq al od M W oo 32 al d an d im is al c d s 5 Ch pr in pr d – d d 2 pr y uc m uc ts d s r pr lie ni Fo er te od 31 U et te – n od M co an d – t, tio tro e Pr AN in la m al la 3 e go en go 33 til m re ra rta 31 – ec ed M m Te x le 31 ve nd 1 9 1 1 d lic el 33 e d re 32 Pl as tic s – – 3 – 32 po ra 33 ab an an bl AL nd qu ns ra ur he et br re g du ra le Tr a itu 31 m tin at D on Le ca te on rn 31 – in pu tri N 6 Fu 2 Pr N – Pe – tro Fa 2 le – 4 um Be al ic – ec 33 m 33 6 – – – 31 – Co El 7 3 4 32 4 33 33 5 33 – NAICS 3-Digit Industry Source: Atrostic, B. K. and J. Gates, 2001, â€Å"U. S. Productivity and Electronic Business Processes in Manufacturing,† CES-WP-01-11, Center for Economic Studies, U. S. Bureau of the Census, Washington, DC. New data from the 1999 Computer Network Use Supplement (CNUS) to the 1999 Annual Survey of Manufactures (ASM) are beginning to be used to model how manufacturing plants use computer networks in the United States. Respondents’ answers to questions about processes can be linked to the information the same respondents reported on regular ASM survey forms, such as the value of shipments, employment, and product class shipments. Figure 5. 2 presents researchers’ estimates of the diffusion of computer networks. The research finds that computer networks are widely diffused within manufacturing, with networks at about half of all plants. The share of employment at plants with networks is almost identical in durable and non-durable manufacturing. Use of networks varies a great deal within those sub-sectors; the share of plants with networks ranges from lows of about 30 percent to highs of about 70 percent. The CNUS also provides new information about some aspects of how plants use computer networks. Figure 5. 2 reports estimates of the diffusion of fully integrated enterprise resource planning software (FIERP); that is, the kind of software that links different kinds of applications (such as inventory, tracking, and payroll) within and across businesses. Plants in all manufacturing industries use this complex software. However, FEIRP software remains relatively rare compared to computer networks. While about half of all manufacturing plants have networks, fewer than 10 percent have this kind of software. 69 32 32 – 32 7 6 – an at ip L 5 – s DIGITAL ECONOMY 2003 Initial research finds that computer networks have a positive and significant effect on plant’s labor productivity. After accounting for multiple factors of production and plant characteristics, productivity is about five percent higher in plants with networks. When economic characteristics in prior periods and investment in computers are also accounted for, there continues to be a positive and statistically significant relationship between computer networks and U. S. manufacturing plant productivity. 10 These initial findings for the United States are consistent with findings for other countries. Recent research for Canada, the Netherlands, and the United Kingdom, for example, all find positive relationships between using computer networks and productivity. 11 Research for Japan finds that computer expenditures and computer networks both affected productivity between 1990 and 2001. In more recent years, the effects are larger, but they also vary much more among industries. 12 Some micro data research for the United States during the 1990s suggests that IT needs to be used together with worker training and revised workplace practices to yield productivity gains. These findings are based on data containing detailed information about the use of computers in the workplace. They also contain information rarely available in other sources on the employers’ management and worker training policies. 3 Research for Australia and Canada, previously cited, also finds that returns to IT are intertwined with the use of R&D, innovation, and changes in workplace practices and organization. This line of research suggests that IT is important, but that it makes its impact when accompanied by changes in other factors and practices. IS THE IMPACT OF IT THE SAME FOR ALL KINDS OF IT, EVERYWHERE? —EVIDENCE FROM STUDIES OF MARKET STRUCTURE IT was widely expected to alter the structure of markets. The direction, however, was unclear. Lower information costs might make it easier for smaller businesses to collect, analyze, and use information and so allow them to enter distant markets or compete more effectively with larger firms. At the same time, the lower information costs might make it easier for larger businesses 9 Atrostic and Nguyen (2002). 10 Atrostic and Nguyen, â€Å"The Impact Of Computer Investment And Computer Network Use On Productivity,† paper presented NBER-CRIW Conference on â€Å"Hard-to-Measure Goods and Services: Essays in Memory of Zvi Griliches,† Washington, DC (September 2003). J. Baldwin, and D. Sabourin, â€Å"Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector,† Research Paper Series, 174, Analytical Studies Branch, Statistics Canada (October 2001) present findings for Canada. E. Bartlesman, G. van Leeuwen, and H. R. Nieuwenhuijsen, â€Å"Advanced Manufacturing Technology and Firm Performance in the Netherlands,† Netherlands Official Statistics, Vol. 11 (Autumn 1996) present findings for the Netherlands. C. Criscuolo and K. Waldron, â€Å"e-Commerce use and firm productivity,† Economic Trends (November 2003) present findings for the United Kingdom. K. Motohashi, â€Å"Firm level analysis of information network use and productivity in Japan,† presented at the conference on Comparative Analysis of Enterprise (micro) Data, London (September 2003). S. Black, and L. Lynch, â€Å"How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,† Review of Economics and Statistics, Vol. 83 No. 3 (August 2001); and D. Neumark and P. Cappelli, â€Å"Do ‘High Performance’ Work Practices Improve Establishment-Level Outcomes? † Industrial and Labor Relations Review (July 2001). 13 12 11 70 DIGITAL ECONOMY 2003 to retain a competitive advantage. Similarly, use of the Internet might make it easier for consumers to compare prices, and so lead to a reduction in prices for products sold on-line or in â€Å"bricks and mortar† establishments. At the same time, a firm building an on-line sales-based business may incur costs that brick and mortar businesses might not, such as cost associated with having inventories available for immediate delivery anywhere in the United States (or the world). The issues are scarcely settled. In this section, selected examples from micro data research illustrate IT’s multifaceted nature and complex economic effects. Trucking A series of studies make use of public-use truck-level data from the Census’ Vehicle Inventory and Use Surveys to examine how IT has affected the trucking industry. Each of these studies indicates the importance of knowing not just that IT is used, but also the details of the IT and how it is used. These studies examine the impact of two classes of on-board computers (OBCs). Standard OBCs function as trucks’ â€Å"black boxes,† recording how drivers operate the trucks. These enable dispatchers to verify how truck drivers drive. Advanced OBCs also contain capabilities that, among other things, allow dispatchers to determine where trucks are in real time and communicate schedule changes to drivers while drivers are out on the road. These advanced capabilities help dispatchers make and implement better scheduling decisions, and help them avoid situations where trucks and drivers are idle, awaiting their next haul. One of these studies assesses OBCs’ impact on productivity by estimating how much they have increased individual trucks’ utilization rate, as measured by their loaded miles during the time they are in service. 4 It finds that advanced OBCs have increased truck utilization by 13 percent among trucks that adopt them; overall, this effect implies a three percent increase in capacity utilization industry-wide, which translates to about $16 billion in annual benefits. The vast majority of this increase comes from trucks in the for-hire, long-haul segment of the industry, and most of these re turns only began to accrue years after trucking firms first began to adopt OBCs. In contrast, the study finds no evidence that standard OBCs have led to increased truck utilization. Combined, these results indicate not just the magnitude of IT’s impact on productivity in the industry but also its nature and timing. IT adoption has led to large productivity gains due to advanced OBCs’ real-time communication capabilities, which enable trucking firms to ensure that trucks operating far from their base are on the road and loaded. These gains, however, appear to have lagged adoption by several years. The other two studies examine how OBCs have affected how the industry is organized. One study investigates how OBCs affect whether shippers use internal fleets or for-hire carriers to ship goods. 5 This study finds that the different classes of OBCs have different effects on this T. Hubbard, 2003, â€Å"Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking,† American Economic Review, September. G. Baker and T. Hubbard, â€Å"Make Versus Buy in Trucking: Asset Ownership, Job Design, and Information,† American Economic Review, Vol. 93 No. 3 (June 2003). 15 14 71 DIGITAL ECONOMY 2003 decision. The diffusion of standard OBCs has tended to increase shippers’ use of internal fleets, but the diffusion of advanced OBCs has tended to increase their use of for-hire fleets. This implies that IT-enabled improvements in monitoring drivers have led shippers to integrate more into trucking, but IT-enabled improvements in scheduling capabilities have led to more contracting-out of trucking. This systematic difference indicates that whether IT tends to lead to larger, more integrated firms or to smaller, more focused firms depends critically on the new capabilities the IT provides. The second of the two organizational studies is similar: it investigates how OBCs have affected whether drivers own the trucks they operate. 6 Traditionally, â€Å"owner-operators† have been an important part of the industry. An advantage associated with owner-operators is that they have strong incentives to drive in ways that preserve their trucks’ value; these incentives have traditionally been far weaker for â€Å"company drivers,† who do not own their trucks. This study shows that OBC diffusion has diminished the use of owner-operators. By allowing firms to monitor how drivers drive, OBCs have eliminated an important incentive advantage of owneroperators, and have led trucking firms to subcontract fewer hauls out to such individuals. Residential Real Estate The Internet vastly increases the amount of information on housing vacancies that is readily available to consumers. Previous research had shown that high costs of information and lack of access to information limited housing searches. The best information available to consumers tended to be for properties near their current location. In addition, research found that information intermediaries such as real estate agents influenced the options that consumers considered. The increased information that the Internet makes available to consumers potentially reduces or eliminates those limits. Consumers can readily learn about properties far from their current locations, and can do so relatively directly (there still may be some influence exerted in how web sites are set up, for example, and consumers may not immediately, or ever, get to the best web site for their needs). Two recent studies use micro data to assess the effect of using the Internet to search for housing. In these cases, micro data from the public-use Current Population Survey provide basic information on what kinds of consumers use the Internet to search for housing. However, the CPS does not have information about the homes that Internet users purchased. To address questions about the kinds of homes purchased, the researchers surveyed a sample of recent home purchasers in a county in North Carolina. Characteristics of buyers who used the Internet as a source of information about housing vacancies were generally similar to those of buyers who only used conventional information sources, except that Internet users were younger. The researchers conclude that using the Internet to shop for housing does not seem to effect geographic search patterns, or to lead consumers to pay lower prices for comparable homes. Although using the Internet might be expected to decrease the number of homes buyers visited, because they would have more information about the houses and neighborhoods, the studies G. Baker and T. Hubbard, â€Å"Contractibility and Asset Ownership: On-Board Computers and governance in U. S. Trucking,† http://gsbwww. uchicago. edu/fac/thomas. hubbard/research/papers/paper_424. pdf (April 2003). 16 72 DIGITAL ECONOMY 2003 instead find that homebuyers who use the Internet as an information source make personal visits to more houses. 7 The Impact of IT on Wages Do â€Å"knowledge workers† receive wage premiums because they use computers? Does the use of IT increase the demand for more-educated workers? Does the growing use of computers by workers in some sectors of the economy explain shifts in the distribution of wages? Initial micro data research answered the first question with a resounding â€Å"yes. † One early study, for example, found that the pay of workers who used computers was 10 to 15 percent higher than the pay of similar workers who did not. 8 However, more recent studies that make use of more detailed information about workers and jobs over multiple periods find that the answer is more nuanced. IT potentially affects many aspects of the performance of businesses. It also may affect the wages, and other characteristics of jobs. Asking how IT affects wages is actually asking two questions. The first question is whether jobs where workers use computers pay higher wages. If the answer is yes, the second question is why. As with IT use in businesses, determining cause and effect of IT use on wages is hard. The jobs might pay higher wages because they require high skill levels. Some IT-using jobs, such as computer programmers and systems analysts, clearly require high skill levels, as do jobs such as architects who use computer-assisted design programs. However, computers appear throughout many workplaces. Workers may use computerized diagnostic equipment and programmable logic controllers, for example, in production applications. Office and service workers may use word processors and spreadsheets, e-mail, computerized billing systems, and so forth. Such jobs might pay higher wages if using a computer makes a worker with a given skill level more productive, but they generally do not require the workers to know much about principles of programming, or system or network design. Finally, the use of IT may allow computers to substitute for low-skilled workers performing repetitive tasks. Micro data studies in the United States, Europe, and Canada all find that workers using computers at work have much higher wages than workers who do not. The difference typically is on the order of 10 to 20 percent. However, these studies all used data from a single period, and many of them lack information about other aspects of the job, the worker, and the employer. This makes it hard to determine whether the workers have higher wages because they use a computer, or because important unobserved characteristics of the employer (is it highly productive regardless of the use of computers? ) or the worker (is the worker already highly skilled before using a computer? ) may affect managers’ decisions on investing in computers and R. Palm and M. Danis, â€Å"Residential Mobility: The Impacts of Web-Based Information on the Search Process and Spatial Housing Choice Patterns,† Urban Geography, Vol. 22, No. 7 (2001); and R. Palm and M. Danis, â€Å"The Internet and Home Purchase,† Journal of Economic and Social Geography, Vol. 93, No. 5 (2002). A. Krueger, â€Å"How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989,† Quarterly Journal of Economics, Vol. 108 No. 1 (February 1993). 18 17 73 DIGITAL ECONOMY 2003 assigning them to which employees. A new study reviewing recent research on the impact of IT on employment, skills, and wages concludes that the story is complex. 9 Studies find that having information on plant characteristics and work practices matters. For example, a study finding that workers using computers in Germany had higher wages than workers who did not also found that a similar wage differential accrued to workers using telephones or pencils, or who worked sitting down. 20 The implication is that the wage differential really reflected the fact that workers using computers, telephones, or pencils, or who work sitting down, receive higher wages because they have higher skills. This research suggests that IT is associated with substantial wage differentials, but does not cause them. Studies for France and Canada find similar wage differentials. 21 Researchers using French and Canadian micro data also have matched sets of data on employers and workers in those countries, and have two or more years of data. Studies using these matched data all find that substantial cross-section returns to computer use fall sharply when they make use of information about changes in both the worker and employer characteristics. Estimates differ by country and study, but the final differentials are modest, 1 to 4 percent. 22 These studies also find that the relatively modest wage differential associated with computer use varies markedly across occupations and among workers with different levels of education. For example, a study for Canada finds that more highly educated workers, white-collar workers, and those adopting the computer for scientific applications receive higher than average wage premiums, while other workers do not receive wage premiums when they start using computers on the job. The reasons for such differences remain unresolved. It may be more costly to teach some groups of workers to use computers, or groups may differ in the proportion of computer training costs that they share with the employer (with lower employer shares resulting in higher wages). The researchers find that controlling for training increases the small or zero wage premiums they otherwise find for many low-skilled groups. They speculate that, if appropriate data were available to test for long-run effects, controlling for training and other worker characteristics might show positive wage differentials for most workers using computers. 3 Some detailed case studies (studies of specific businesses, usually anonymous) suggest another reason for differences in the wage differential associated with using computers at work. One M. Handel, â€Å"Implications of Information Technology for Employment, Skills, and Wages: A Review of Recent Research,† SRI International, SRI Project Number P10168, Final Report (July 2003). J. DiNardo and J. Pis chke, â€Å"The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too? † The Quarterly Journal of Economics, Vol. 112 No. 1 (February 1997). H. Entorf, M. Gollac, and F. Kramarz, â€Å"New Technologies, Wages, and Worker Selection. † Journal of Labor Economics (1999), and H. Entorf, and F. Kramarz, â€Å"Does Unmeasured Ability Explain the Higher Wages of New Technology Workers? † European Economic Review, Vol. 41 (1997); and C. Zoghi and S. Pabilonia, â€Å"Which Workers Gain from Computer Use? † Paper presented at NBER Summer Meetings (July 2003). 22 23 21 20 19 E. g. , Entorf and Kramarz 1997. C. Zoghi and S. Pabilonia 2003. 74 DIGITAL ECONOMY 2003 case study examined the effect of introducing computers into the operations of a financial organization. For some occupations, the case study found that computers substitute for the routine work that individuals previously performed, reducing the need for such workers. In other occupations, however, computers appear to take on routine tasks and free workers to perform more complex, higher skilled, problem-solving activities. 24 If IT also allows the business to alter the way it works and organize itself more productively, it may raise the skill requirements for all workers in the business, even if they do not directly use computers. Insights from the International Micro Data Initiative A wave of new literature in plant- or firm-level research on the effects of IT has been conducted in countries participating in the OECD. 25 (See box 5. 1. ) As with research using U. S. micro data, the micro data research conducted in other countries also find links between IT and productivity. Where information on computer networks is available, or other measures of how computers are used, the research again suggests that it is not just having IT, but how IT is used that effects economic performance measures such as productivity. Two kinds of studies are being undertaken. Some studies base their research on new data on IT for a single country. They make use of as much information as they can, and choose empirical techniques best suited to their data. Studies such as these contribute important insights, particularly when one country has information that other countries do not, or researchers are able to use techniques that help ensure that the measured effects indeed are due to IT. However, this strength also makes it hard to compare such estimates across countries. Studies from individual OECD countries find that IT has an impact on productivity and economic performance. Significant effects of IT on productivity are found in the service sector in Germany. 26 Recent research for France finds that one specific kind of network, the Internet, is associated with productivity gains, but other kinds of networks, which have been in use much longer, are not. 27 Canadian research finds that adopting IT is associated with growth in both productivity and market share. 8 Use of computers in Australia also is associated with productivity growth, with effects that vary across industries and are intertwined with other factors, such as the skill of a business’ work force, its organization and re-organization, and its innovativeness. 29 24 D. Autor, F. Levy and R. Murnane, â€Å"Upstairs, Downstairs: Computer-Skill Complementarity and Computer-Labor Substitution on Two Floors of a Large Bank,† Industrial & Labor Relations Review 55(3) (2002). Resea rch to date is summarized in D. Pilat, ICT and Economic Growth: Evidence from OECD Countries, Industries, and Firms (Paris: OECD, 2003). T. Hempell, â€Å"What’s Spurious, What’s Real? Measuring the Productivity Impacts of ICT at the Firm-Level,† Discussion Paper 02-42, Centre for European Economic Research (Zentrum fur Europaische Wirtschaftsforschung GmbH; ZEW, 2002), ftp://ftp. zew. de/pub/zew-docs/dp/dp0242. pdf. B. Crepon, T. Heckel, and N. Riedinger, http://www. nber. org/CRIW/papers/crepon. pdf, Paper presented at â€Å"R&D, Education, and Productivity,† NBER CRIW conference in honor of Zvi Griliches (Paris: August 2003). 8 29 27 26 25 J. Baldwin and D. Sabourin 2001. G. Gretton, J. Gali, and D. Parham, â€Å"Uptake and impacts of ICTs in the Australian economy,† paper presented at OECD, Paris, December 2002. 75 DIGITAL ECONOMY 2003 Another group of studies tries to use as many variables and analytical techniques as possible that are similar to those used by researchers in a few other countries. 30 This approach may exclude some variables and some analytical techniques, if researchers in several countries cannot use them. On the other hand, this kind of coordination makes it more likely that similar empirical findings are actually due to IT, and that differences in empirical findings are due to differences in economic conditions and other factors among countries. An example is a group of researchers conducting parallel analyses for the United States, Denmark, and Japan. 31 Preliminary findings are that IT is positively related to productivity in all three countries, but that the relationship depends on the type of IT used, the sector, and time period. Early results for Denmark show a significant correlation between several measures of the firm’s performance and use of the Internet, but not for other uses of IT. For Japan, productivity levels are consistently higher for firms using IT networks. However, growth in labor productivity varies by type of network and how the network is used, and the effect of Internet use is higher for retail trade firms than for manufacturing firms. For U. S. manufacturing plants, there is a strong relationship between use of computer networks and labor productivity. Better Micro Data Research Requires Better Micro Data Because the micro data are typically collected for other purposes, such as constructing key economic indicators, we almost always find that they lack some (often, much) of the information needed to address questions such those about the pervasiveness of IT and its effect. These gaps simply do not allow us to draw firm conclusions about the effect of IT. For example, research exploring the micro-level link between IT and economic performance may not always be able to separate the role of IT from other related but unobserved characteristics of the plant. Well-managed plants may use IT as one of many tools to achieve performance goals. If we have information about IT, but not about management practices, the research may attribute performance effects to IT that really are due to good management. Estimating plant-level relationships among computers, computer networks, and productivity also is hard to do with existing data because many of the most important concepts—what a business produces (output), and all the factors it uses to make its product (such as labor, capital, energy, etc. known as â€Å"inputs†), as well as IT itself—are difficult to define, and data based on these concepts are hard to collect. 32 Continuing research on these concepts leads to improve- For example, researchers in several countries are using the approach taken by U. S. researchers (Atrostic and Nguyen 2002), and using its findings as the benchmark against which they are comparing research findings using their own countries’ data. B . K. Atrostic, P. Boegh-Nielsen, K. Motohashi, and S. Nguyen, â€Å"Information Technology, Productivity, and Growth in Enterprises: Evidence from New International Micro Data,† L’acutalite economique (forthcoming 2004). A large literature lays out major data gaps in estimating the impact of information technology on economic performance. For example, conferences conducted by the NBER Conference on Research in Income and Wealth (CRIW) addressing capital and labor measurement over the last 20 years include D. Usher, The Measurement of Capital (NBER CRIW Volume 45 (Chicago University Press, 1980)); J. Triplett, The Measurement of Labor Cost (NBER CRIW Volume 48 (Chicago University Press, 1983)); and C. Corrado, J. Haltiwanger, and D. Sichel, Measuring Capital in the New 32 31 0 76 DIGITAL ECONOMY 2003 ments in what statistical agencies collect, but a dynamic and evolving economy continually presents new challenges. Even when concepts are well defined, it is costly for statistical agencies to collect data and for respondents to provide the requested information. As a result, some key information needed for analysis may not be collected often or at all. Examples include information such as the number of computers and computer networks that businesses have, how they use them, and how much businesses invest in computers and other IT. The divergent findings in the resulting empirical literature on the effects of IT are likely related to these data gaps, and to differences in the techniques researchers use to try to deal with them. 33 One way to improve the micro data available for research would be by better integrating aggregate economic indicators and their underlying micro data. It currently is not always easy to reconcile movements in the aggregate statistics with changes observed in the micro data. Aggregate indicators often are constructed from multiple micro data sources, and different sources of data for any concept (such as employment or payroll) may disagree. Collecting more of the data underlying aggregate statistics in ways that enrich their value as micro data, such as using common sampling frames and keeping information that allows linkage of same economic unit over time and across surveys, would improve both the micro data and our ability to understand changes in the aggregate economic indicators. Conclusion Micro data research conducted in the United States and in OECD countries shows that IT is related to economic performance and productivity. Careful research also shows that the relationships are complex. IT emerges as a multifaceted factor. The kind of IT that is used and how it is used appear to matter in many (but not all) settings, including the ownership structure of trucking markets, the relative dynamism of retailing, and the relative risk taking and innovativeness of manufacturing sectors across countries. At the same time, the use of IT alone does not appear to be enough to affect economic performance. When researchers have information about the characteristics of businesses, workers, jobs, and markets, they find that IT appears to work instead in tandem with those factors. Economy (NBER CRIW Volume 65 (Chicago University Press, forthcoming)). A series of meetings of international experts, known as the â€Å"Canberra Group,† addressed capital measurement issues during the late 1990s (http:// unstats. un. org/unsd/methods/citygroup/capitalstock. htm). An excellent manual describing how to calculate productivity devoted considerable text to issues in measuring capital can be found in P. Schreyer, Measuring Productivity: Measurement of Aggregate and Industry-Level Productivity Growth—OECD Manual (Paris: OECD 2001). Measuring intangible capital, potentially important in both IT and non-IT capital, received much attention recently (see for example B. Lev, Intangibles: Management, Measurement, and Reporting (Brookings Institution Press: 2001)). 33 See, for example, Dedrick et al. (2003); D. Pilat, 2003; B. K. Atrostic, J. Gates, and R. Jarmin, 2000, â€Å"Measuring the Electronic Economy: Current Status and Next Steps,† Working Paper CES-WP-00-10, Center for Economic Studies, U. S. Bureau of the Census, Washington DC; and J. Haltiwanger, and R. Jarmin (2000), â€Å"Measuring the Digital Economy,† in E. Byrnjolfsson and B. Kahin (eds. ), Understanding the Digital Economy (MIT Press 2000). 77 DIGITAL ECONOMY 2003 Separating out the effect of IT remains difficult because the analysis requires detailed information, and requires it for multiple periods. However, such detailed and repeated information is rare. Most business micro data contain only the information needed to calculate important economic indicators. The micro data are most sparse for the sectors outside manufacturing—the most IT-intensive sectors. More definitive research on the impact of IT requires that producing micro data sets becomes a statistical agency priority. 78 DIGITAL ECONOMY 2003 Appendix 5. A. Conducting Micro Data Research on the Impact of IT THE CENTER FOR ECONOMIC STUDIES, U. S. CENSUS BUREAU The Center for Economic Studies (CES) is a research unit of the Office of the Chief Economist, U. S. Bureau of the Census, established to encourage and support the analytic needs of researchers and decision makers throughout government, academia, and business. CES currently operates eight Research Data Centers (RDCs) throughout the United States. RDCs offer qualified researchers restricted access to confidential economic data collected by the Census Bureau in its surveys and censuses. CES and the RDCs conduct, facilitate, and support research using micro data to increase the utility and quality of Census Bureau data products. The best way for the Census Bureau to assess the quality of the data it collects, edits, and tabulates is for knowledgeable researchers to use micro records in rigorous analyses. Each micro record results from dozens of decisions about definitions, classifications, coding rocedures, processing rules, editing rules, disclosure rules, and so on. Analyses test the validity of all these decisions and uncover the data’s strengths and weaknesses. Research projects at CES and its RDCs are examining how facets of the electronic economy affect productivity, growth, business organization, and other aspects of business performance using both new data collected specifically to provide new information about IT , and existing data. Projects using existing Census Bureau micro data on businesses include McGuckin et al. 998; Dunne, Foster, Haltiwanger and Troske, 2000; Stolarick 1999; and Doms, Jarmin, and Klimek, 2002). Research making use of the new 1999 supplement to the Annual Survey of Manufactures linked to existing Census Bureau micro data include Atrostic and Gates 2001; Atrostic and Nguyen 2002; Haltiwanger, Jarmin, and Schank 2002; and Bartelsman et al. 2002. Research findings from many of these projects are discussed in this chapter. The research also helps the Census Bureau assess what current data collections can say about the electronic economy so that we can more efficiently allocate resources to any new measurement activities. More information about CES, RDCs, requirements for access to data, and examples of research produced at the RDCs is at http://www. ces. census. gov/ces. php/home. DATA SOURCES AT CES Researchers at CES and the RDCs built, and use, a longitudinal data set linking manufacturing plants over time. The data are based on surveys and economic censuses, and contain detailed data on shipments and factors used to produce them, such as materials and labor, as well as characteristics of the plant, such as whether it exports. Recent CES research broadens the range of available micro data beyond manufacturing. A new micro data set, the Longitudinal Business Database, currently contains the universe of all U. S. business establishments with paid employees from 1976 to present. It allows researchers to examine entry and exit, gross job flows, and changes in the structure of the U. S. economy. The LBD can be used alone or in conjunction with other Census Bureau surveys at the establishment 79 DIGITAL ECONOMY 2003 and firm level. In addition, micro data from surveys and censuses of the retail, wholesale, and some service sectors is now becoming available. The National Employer Survey, conducted by the Census Bureau for the National Center on the Educational Quality of the Workforce, collects detailed information about work practices, worker training, and the use of computers. Restricted access to confidential data from the survey is available to qualified researchers through the RDCs. Information about the National Employer Survey can be found at http://www. census. gov/econ/overview/mu2400. html. PUBLIC-USE DATA This chapter also refers to research conducted using two other sets of micro data collected by the Census Bureau. The Current Population Survey (CPS) is a survey of households that is collected by the Census Bureau for the Bureau of Labor Statistics. The CPS periodically collects information about people’s use of computers at work and at home. More information can be found at http://www. census. gov/population/www/socdemo/computer. html. The Truck Inventory and Use Surveys collect information about on-board trip computers and electronic vehicle management systems as part of the Census of Transportation. Information about the Census of Transportation can be found at http://www. census. gov/econ/www/tasmenu. html. 80