Modeling Automation
Name
pandp.20181020.pdf
Description
Published version
Size
491.65 KB
Format
Adobe PDF
Checksum (MD5)
ebd0b4daff9ecbf0322a4a59a852c030
Author(s)
Acemoglu, K. Daron
Restrepo, Pascual
Date Issued
May 2018
Journal
AEA Papers and Proceedings
Publisher
American Economic Association
Citation
Acemoglu, Daron, and Restrepo, Pascual. "Modeling Automation." AEA Papers and Proceedings, 108 (May 2018): 48-53. ©2018 American Economic Association.
Version
Final published version
Abstract
Modeling automation as factor-augmenting technological change has unappealing implications. Instead, modeling it as the process of machines replacing tasks previously performed by labor is both descriptively realistic and leads to distinct and plausible predictions. In contrast to factor-augmenting technological change, the automation of tasks always reduces the labor share and can reduce the equilibrium wage (for realistic parameter values). This approach to automation underscores the role of new tasks, changes in the comparative advantage of labor, the possibility that machines become more productive in automated tasks, and the elasticity of substitution and capital accumulation in the adjustment of the economy.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1257/pandp.20181020
