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 …

-based model of AI's effects, working through automation and task complementarities. So long as AI's microeconomic effects are … driven by cost savings/productivity improvements at the task level, its macroeconomic consequences will be given by a version … of Hulten's theorem: GDP and aggregate productivity gains can be estimated by what fraction of tasks are impacted and …

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 …