We assess the long-run growth effects of automation in the overlapping generations framework. Although automation …. The reason is that automation suppresses wage income, which is the only source of investment in the overlapping … generations model. Our result stands in sharp contrast to the representative agent setting with automation, where sustained long …

This paper examines the implications of automation capital in a Solow growth model with two types of labour. We study … the transition from standard production to production using automation capital which substitutes low-skilled workers. We …-skilled labour and are not automatable. We show that under these assumptions, automation capital does not generate endogenous growth …

We analyze the effects of declining population growth on the adoption of automation technology. A standard theoretical … framework of the accumulation of traditional physical capital and of automation capital predicts that countries with a lower … population growth rate are the ones that innovate and/or adopt new automation technologies faster. We test the theoretical …

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 …

, in which automation turns labor tasks to mechanized ones, and there is also a continuous addition of new labor tasks, as … to zero in the long run. We show that these restrictions imply that unemployment due to automation is expected to …