The implications of automation for economic growth and the labor share

Arbeitspapier

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; (iv) the labor share declines with automation to an extent that fits to the observed pattern over the last decades.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Hohenheim Discussion Papers in Business, Economics and Social Sciences ; No. 18-2016

Classification and Topics

• Classification: Wirtschaft ; Macroeconomic Analyses of Economic Development ; Technological Change: Choices and Consequences; Diffusion Processes ; One, Two, and Multisector Growth Models
• Subject: automation ; robots ; machine learning ; perpetual economic growth ; declining labor share ; inequality

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Prettner, Klaus
• Event: Veröffentlichung
• (who): Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften
• (where): Stuttgart
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/147306
• URN: urn:nbn:de:bsz:100-opus-12880