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 …

. Low-skill (high-skill) automation corresponds to tasks performed by low-skill (high-skill) labor being taken over by … capital. Automation displaces the type of labor it directly affects, depressing its wage. Through ripple effects, automation … also affects the real wage of other workers. Counteracting these forces, automation creates a positive productivity effect …

finding might reflect the more rapid adoption of automation technologies in countries undergoing more pronounced demographic …

effects of automation. We isolate a new theoretical mechanism: automation increases inequality via returns to wealth. The flip … side of such return movements is that automation is more likely to lead to stagnant wages and therefore stagnant incomes at … productive and safe assets and show that the relevant return measures have increased over time. Automation accounts for part of …

This paper describes the adoption of automation technologies by US firms across all economic sectors by leveraging a … tasks previously performed by labor. Consistent with the use of these technologies for automation, adopters have higher …