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 …

There seems to be two interrelated concerns with automation: first, does increases in the minimum wage encourage … businesses to further automate their processes; and second, does automation affect the demand for labor, especially the low …

This paper examines the welfare effects of automation in neoclassical growth models with and without intergenerational … transfers. In a standard overlapping generations model without such transfers, improvements in automation technologies that … intergenerational transfers based on altruism, automation could raise the well-being of all generations. With imperfect altruism, fiscal …