How should the government respond to automation? We study this question in a heterogeneous agent model that takes … borrowing is limited. We first show that these frictions result in inefficient automation. Firms fail to internalize that … where the government can tax automation but lacks redistributive tools to fully overcome borrowing frictions. The …

-level robot adoption. Overall, our results highlight the uneven effects of automation on the workforce …

automation, health care, and energy, and correcting these distortions could have sizable welfare benefits …

types of capital: traditional physical capital (machines, assembly lines), industrial robots, and AI. Following the … literature, we assume that industrial robots predominantly substitute for low-skill workers, whereas AI mainly helps to perform …

, the task polarization model, the automation-reinstatement race, and the era of Artificial Intelligence uncertainty. The … effects of technology for productivity and welfare has eroded as understanding has advanced. Given this intellectual …

ever more complex tasks amenable to automation. The effects on wages depend on a race between automation and capital … accumulation. If automation proceeds sufficiently slowly, then there is always enough work for humans, and wages may rise forever …. By contrast, if the complexity of tasks that humans can perform is bounded and full automation is reached, then wages …