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Excerpt from Software Production Economics: Theoretical Models and Practical Tools
The general outline of this paper is as follows. Section II describes one classic theoretical economic model developed by Galbraith to describe the impact of the increased use of technology on production processes. While this model was originally applied to manufacturing, it is sufficiently powerful to be of use in describing other production applications. Section III discusses its applicability to software production, and uses it to make predictions about what the future may hold for software engineering methods and tools. Section IV then summarizes the results of some actual current research that models software development as an economic production process. These results illustrate the usefulness not only of the economic concepts, but also of the tools of economic analysis. Section V then describes some ongoing and planned research which takes further advantage of the economic models. Concluding remarks are presented in Section VI.
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