Automation, stagnation, and the implications of a robot tax
| Autor: | Klaus Prettner, Emanuel Gasteiger |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Technological change media_common.quotation_subject Wage Representative agent Monetary economics Overlapping generations model Investment (macroeconomics) Ciências Sociais::Economia e Gestão [Domínio/Área Científica] Automation Investment decisions Stagnation Per capita Economics Robot taxes Economic impact analysis Economic growth media_common Fiscal policy |
| Zdroj: | Repositório Científico de Acesso Aberto de Portugal Repositório Científico de Acesso Aberto de Portugal (RCAAP) instacron:RCAAP |
| Popis: | We assess the long-run growth effects of automation in the overlapping generations framework. Although automation implies constant returns to capital and, thus, an AK production side of the economy, positive long-run growth does not emerge. The reason is that automation suppresses wage income, which is the only source of investment in the overlapping generations model. Our result stands in sharp contrast to the representative agent setting with automation, where sustained long-run growth is possible even without technological progress. Our analysis therefore provides a cautionary tale that the underlying modeling structure of saving/investment decisions matters for the derived economic impact of automation. In addition, we show that a robot tax has the potential to raise per capita output and welfare at the steady state. However, it cannot induce a takeoff toward positive long-run growth. |
| Databáze: | OpenAIRE |
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