Productivity and economic performance of information technology

The paper examines what economists have said about the problematic assumptions of the productivity concept and their critiques of the difficulties involved in using it to make performance evaluations. We endeavor to show the complexity of using the productivity concept to evaluate the performance impact of investing in information technology. This critique is directed toward economists and managers who do not really understand the empirical limitations of the productivity concept. It may also be useful to economists and managers who, although aware of these limitations, hope that through careful analysis, the empirical difficulties can be overcome.