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Purpose The purpose of this paper is to discuss the high rates of economic growth of the US economy and the remarkable acceleration of productivity growth since the mid-1990s which is widely attributed to the modern information and communication technologies (ICTs). Design/methodology/approach After identifying three key factors for Solow's productivity puzzle and examining ICTs as a general purpose technology, three main channels of ICTs' impact in the economy are discussed: the first transmission channel is direct and consists of the effects generated by rapid technical progress within the ICT-capital goods producing sector. The second one is due to the increasing accumulation and application of ICT goods and services in the user sectors. ICTs' positive spillover effects comprise the third transmission channel, i.e. they lead to "disembodied" increases in efficiency in the sense of "learning by doing" in the end-user sector. Findings - The diffusion of ICTs requires investment in all industries, i.e. the improvement of competitiveness on the macro level is strongly linked to investment activities and skill qualifications on the micro level. Research limitations/implications The paper concludes with some comparisons between the US and the German economy where the acute need for infrastructure investment in East Germany in the 1990s limited the possibilities for investment in ICTs exactly at a time of high-technological dynamism at the start of an upswing of a new Kondratieff cycle. Although some comparisons with the EU are made the impact of ICTs in other countries except the USA and Germany is not discussed more intensively. Practical implications A very useful source of information for graduate students and policy makers alike on the theoretical and empirical impact of new technologies on economic development. Originality/value - This paper fulfils an information need for comparing growth in international perspective. [ABSTRACT FROM AUTHOR]

Purpose - How many hours per week should workers in the USA and Germany spend at their paying jobs? The present paper aims to address this question by constructing policymakers' reaction functions capable of modelling the optimal length of working time as a function of the relevant labour market variables. Design/methodology/approach - The study is based on a counterfactual policy experiment. Given a policymaker's loss function and a structural model of the labour market alternative specifications of reaction functions are defined where the response coefficients indicate how policymakers should react to any news in the labour market in order to stabilise employment and wages. Findings - The results suggest that simple rules perform quite well and that the advantages obtained from adopting an optimal control-based rule are not so great. Moreover, the analysis emphasises the success of the wage-based rule and of the employment-based rule in the USA and Germany, respectively. Research limitations/implications - The study is based on a counterfactual policy experiment, which perhaps limits its operational value. Practical implications - Labour market authorities might stabilise employment and wages by implementing policy rules. Originality/value - The paper proposes a policy rule to capture the dynamics of the weekly working hours. According to the rule in the paper the length of the workweek is an inverse function of the deviation between the actual and potential employment level. [ABSTRACT FROM AUTHOR]