inequality, and higher productivity growth through automation. In this paper we critically re-assess these predictions by (i … aggregate demand. A second is that the predictions of AI causing massive job losses and faster growth in productivity and GDP … growth and productivity is stagnating and inequality is rising. Our paper provides a theoretical explanation of this in the …

, as a technology platform, can automate tasks previously performed by labor or create new tasks and activities in which … labor demand, declining labor share in national income, rising inequality and lower productivity growth. The current …

allocation of tasks to capital and labor – the task content of production. Automation, which enables capital to replace labor in … productivity. The effects of automation are counterbalanced by the creation of new tasks in which labor has a comparative advantage …, especially in manufacturing, a weaker reinstatement effect, and slower growth of productivity than in previous decades. …

values of the standard Solow productivity residual. The equivalence holds if the representative household maximizes utility … where it does not properly measure technology) and makes it possible to calculate the contributions of disaggregated units …-level (EU-KLEMS) and firm-level (Amadeus) data. After adding further assumptions about technology and market structure (firms …

demand and slow down GDP growth, even in the face of the positive technology shock that AI entails. If the elasticity of … substitution is low, then GDP, productivity and wage growth may however still slow down, because the economy will then fail to …, productivity, and GDP. …

technology, (iii) weaknesses in the education system, and (iv) entrepreneurial stagnation. Implications for policy are noted. Our …

In "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," Acemoglu … impact of AI on jobs, inequality, wages, labor productivity and long-run GDP growth are explored. …