TY - JOUR
T1 - A Note on the Implications of Automation for Economic Growth and the Labor Share
AU - Prettner, Klaus
PY - 2019
Y1 - 2019
N2 - 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.
AB - 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.
UR - https://www.cambridge.org/core/journals/macroeconomic-dynamics/article/note-on-the-implications-of-automation-for-economic-growth-and-the-labor-share/DCAF599DB3CD167270D652C1F23AA0D5
U2 - 10.1017/S1365100517000098
DO - 10.1017/S1365100517000098
M3 - Journal article
SN - 1365-1005
VL - 23
SP - 1294
EP - 1301
JO - Macroeconomic Dynamics
JF - Macroeconomic Dynamics
ER -