In just a few years, the Internet has had a visible impact on the daily lives of many Americans. But the recent demise of many of the dot coms that symbolized the Internet revolution has raised warning flags about its future. Until now, discussion of the impact of the Internet on the economy has been mostly speculation. In Beyond the Dot.coms, two of the nations most respected economists articulate the anticipated economic impact of the Internet over the next five years. Drawing from detailed research conducted by the Brookings Task Force on the Internet and the Berkeley Roundtable on the International Economy (BRIE) Internet Task Force (see page 10), Robert Litan and Alice Rivlin address the Internets potential impacts on productivity, prices, and market structure. The research suggests that the most significant economic impact of the Internet will be its potential to increase productivity growth in the existing economywith cheaper transactions, greater management efficiency, increased competition and broadened markets, more effective marketing and pricing, and increased consumer choice, convenience, and satisfaction. The greatest impact may not be felt in e-commerce, but rather in a wide range of old economy arenas, including health care and government.
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About the Author
Robert E. Litan is vice president and director of Economic Studies at the Brookings Institution, where he also holds the Cabot Family Chair in Economics. Among his many books, he is co-author of Going Digital! (Brookings, 1998). He previously served as deputy assistant attorney general in the Antitrust Division of the Justice Department and as associate director of the Office of Management and Budget. Alice M. Rivlin is a senior fellow in the Economic Studies Program and holds the Johnson Family Chair in Urban Policy in the Brookings Center on Metropolitan and Urban Policy. She was the first director of the Congressional Budget Office and served as director of the Office of Management and Budget and vice-chairperson of the Federal Reserve System.
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