To: Road Walker who wrote (106531 ) 8/1/2000 12:09:33 PM From: Harry Landsiedel Read Replies (1) | Respond to John Fowler and thread. Re: "Intel and productivity" Mr. Jorgenson, in an interview, points directly to Intel Corp. Beginning in the early 1990s, he said, the company perceived a threat to its dominance of the semiconductor market. It dramatically cut the time it took to create a new generation of chips and sent faster and more powerful chips into the market at a quicker pace. The result was a sharp decline in computer prices that began in 1995. While prices fell about 15% annually between 1990 and 1995, they began declining at almost a 30% annual clip in the 1995 to 1998 era. The price decline unleashed an investment boom as consumers, including both business and households, gravitated "toward relatively cheaper inputs," according to Messrs. Jorgenson and Stiroh.
