Quotation Prettner, Klaus. 2019. A Note on the Implications of Automation for Economic Growth and the Labor Share. Macroeconomic Dynamics. 23 1294-1301.


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Abstract

We introduce automation into a standard model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the available empirical evidence; (iii) there is a unique share of savings diverted to automation that maximizes long-run growth; and (iv) automation explains around 14% of the observed decline of the labor share over the last decades in the United States.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Macroeconomic Dynamics
Citation Index SSCI
WU-Journal-Rating new FIN-A, VW-C
Language English
Title A Note on the Implications of Automation for Economic Growth and the Labor Share
Volume 23
Year 2019
Page from 1294
Page to 1301
Reviewed? Y
URL https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/note-on-the-implications-of-automation-for-economic-growth-and-the-labor-share/DCAF599DB3CD167270D652C1F23AA0D5
DOI https://doi.org/10.1017/S1365100517000098
Open Access N

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People
Prettner, Klaus (Details)
Organization
Department of Economics (Crespo Cuaresma) (Details)
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