The impacts of unemployment and inflation rates on the value of IT and economic performance: The partial adjustment valuation approaches

This study engages in a topic on production research/economics and operations management by applying the constant and dynamic partial adjustment valuation (PAV) approaches to analyze how the country’s aggregate output production is impacted jointly or separately by IT and two important macroeconomic variables, namely, unemployment rate and inflation rate from a global perspective. The nonlinear seemingly unrelated regressions results reveal that the IT productivity paradox is still present in some developed countries; actual IT payoffs hinge on the exploitation of available complementary resources; and complementarity and substitutability between IT and unemployment and inflation exist.<br>