Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141275
Authors: 
Prettner, Klaus
Year of Publication: 
2016
Series/Report no.: 
ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 04/2016
Abstract: 
We introduce automation into the standard Solovian 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 the long-run growth rate of the economy; (iv) the labor share declines with automation to an extent that fits to the observed pattern.
Subjects: 
automation
robots
machine learning
perpetual economic growth
declining labor share
inequality
JEL: 
O11
O33
O41
Document Type: 
Working Paper

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