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In this paper, I study technological change as a candidate for the observed increase in consumption inequality in the United States. I build an incomplete market model with educational choice combined with a task-based model on the production side. I consider two channels through which...
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We analyze the long-run growth effects of automation in the standard overlap- ping generations framework. We show that …, in contrast to other neoclassical models of capital accumulation, automation does not promote growth but induces economic … stagnation. The reason is that automation suppresses wages, which are the only source of investment in the overlapping …
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