880-01 Cover; Contents; I. Introduction; A. The Theoretical Literature: Searching for the Right Approach; B. This Paper; II. Model 1: Robots Do Everything; A. The Short- vs. Long-Run Outcome; B. The Transition Path; III. Model 2: Robots Cannot Do Everything; A. The Direct Effect of Automation (bZ₁! on Labor Demand; B. The Long Run; C. The Transition Path; IV. Model 3: Robots Do Not Substitute for Skilled Labor; A. Multi-Dimensional Inequality; B. The Transition Path: Distributional Carnage; V. Model 4: Adding a Non-Automatable Sector; VI. Concluding Remarks; References; Appendices; A. Model 1
880-01/(S 6. Model 2: The tradeoff between the short and long run7. Model 2: Response of the robot capital stock when σ[Sub (2)] is very high; 8. Model 2: Transition path under alternative scenarios for σ[Sub(2)] and b; 9. Model 3: The transition path for various elasticities; 10. Model 4: Transition paths for differing factor intensities in the non-automatable sector
Summary
"Advances in artificial intelligence and robotics may be leading to a new industrial revolution. This paper presents a model with the minimum necessary features to analyze the implications for inequality and output. Two assumptions are key: "robot" capital is distinct from traditional capital in its degree of substitutability with human labor; and only capitalists and skilled workers save. The authors analyze a range of variants that reflect widely different views of how automation may transform the labor market. Their main results are surprisingly robust: automation is good for growth and bad for equality; in the benchmark model real wages fall in the short run and eventually rise, but "eventually" can easily take generations."--Abstract
Notes
"May 2018."
Online resource; title from PDF title page (IMF, viewed September 5, 2019)
