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Automation and economic growth in a task‐based neoclassical growth model.

Authors :
Ikeshita, Kenichiro
Uchida, Hideaki
Nakamura, Tamotsu
Source :
Metroeconomica; Nov2023, Vol. 74 Issue 4, p908-927, 20p
Publication Year :
2023

Abstract

This paper incorporates a task‐based approach into the Solow growth model to analyze the effects of automation on economic growth. We find that if task producers smoothly adopt automation technology along the capital accumulation path, sustained growth is possible even without technological progress. This result is brought about by the fact that task automation makes the aggregate production function linear. In addition, we demonstrate that both the rental price of capital and the wage are constant on the growth path. In sum, while the interaction between task automation and capital accumulation can be a pathway for sustained growth in output, it leads to the cease of wage growth in the long run. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00261386
Volume :
74
Issue :
4
Database :
Complementary Index
Journal :
Metroeconomica
Publication Type :
Academic Journal
Accession number :
172756171
Full Text :
https://doi.org/10.1111/meca.12427