We are grateful to Martin N. Baily, Ernst Berndt, Bronwyn Hall, Christopher Jencks, seminar participants at Duke, the University of Michigan, Princeton University, the European University Institute, and to participants in the CRIW meeting on "Hard-to-Measure Goods and Services: Essays in Memory of Zvi Griliches" in September 2003. Weiping Zhou and Daniel Gottlieb provided superb data analysis. ...