"This paper finds soubstantial effects of ICT investments on productivity for a large and representative German establishment panel data set. In contrast to the bulk of the literature also establisment without ICT capital are included and lagged effects of ICT investments are analysed. In addition, a broad range of establishments and employee characteristics are taken account of in order to avoid omitted variable bias. It is shown that taking into account unobserved heterogeneity of the establishments and endogeneity of ICT investments increases the estimated lagged productivity impact of ICT investments."

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