created. In a static version where capital is fixed and technology is exogenous, automation reduces employment and the labor … capital accumulation and the direction of research towards automation and the creation of new tasks. If the long-run rental … rate of capital relative to the wage is sufficiently low, the long-run equilibrium involves automation of all tasks …

share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967 …) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with … the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing …

The evidence for the United States points to balanced growth despite falling investment-good prices and an elasticity … of substitution between capital and labor less than one. This is inconsistent with the Uzawa Growth Theorem. We extend … Uzawa's theorem to show that the introduction of human capital accumulation in the standard way does not resolve the puzzle …

differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector … with a greater capital share, but simultaneously induces a reallocation of capital and labor away from that sector. We … models, non-balanced growth is shown to be consistent with an asymptotic equilibrium with constant interest rate and capital …

capital and labor are gross complements or substitutes. Establishing the magnitude of `sigma` is vital, not only for … that there has been capital deepening. This paper presents evidence that refutes these claims. It shows that despite a rise … in measured capital-labor ratios, labor-augmenting technical change in the US has been sufficiently rapid that effective …

We provide an argument for long-term automation and decline in the labor income share, driven by capital accumulation … rather than technical progress or rising markups. We emphasize a fundamental asymmetry across physical and human capital. An … rescaled in the same way. Then ongoing capital accumulation gives rise to progressive automation, and the share of labor income …

This paper studies the nature of capital adjustment at the plant-level. We use an indirect inference procedure to … estimate the structural parameters of a rich specification of capital adjustment costs. In effect, the parameters are optimally … chosen to reproduce the nonlinear relationship between investment and profitability that we uncover in the plant-level data …

countries and industries. We show that the decrease in the relative price of investment goods, often attributed to advances in … information technology and the computer age, induced firms to shift away from labor and toward capital. The lower price of … investment goods explains roughly half of the observed decline in the labor share, even when we allow for other mechanisms …

This paper revisits capital-skill complementarity and inequality, as in Krusell, Ohanian, Rios-Rull and Violante (KORV …. We find strong evidence for continued capital-skill complementarity in the most recent data, and that the model continues …

This paper estimates the elasticity of substitution between capital and skill using variation across U.S. counties in … immigration-induced skill mix changes between 1860 and 1930. We find that capital began as a q-complement for skilled and … parametric production function calibrated to our estimates imply the level of capital-skill complementarity after 1890 likely …