also affects the real wage of other workers. Counteracting these forces, automation creates a positive productivity effect …, pushing up the price of all factors. Because capital adjusts to keep the interest rate constant, the productivity effect …

-in-hand with modest productivity gains …

is inefficient and reduces (and could even negate) the productivity gains from automation. Using data for the US from … contribution. We also estimate that inefficient rent dissipation offset 60-90% of the productivity gains from automation since 1980 …