Modeling Automation
Modeling automation as factor-augmenting technological change has unappealing implications. Instead, modeling it as the process of machines replacing tasks previously performed by labor is both descriptively realistic and leads to distinct and plausible predictions. In contrast to factor-augmenting...
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| Format: | Article |
| Language: | English |
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American Economic Association
2020
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| Online Access: | https://hdl.handle.net/1721.1/125740 |
| _version_ | 1811083015829323776 |
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| author | Acemoglu, K. Daron Restrepo, Pascual |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Acemoglu, K. Daron Restrepo, Pascual |
| author_sort | Acemoglu, K. Daron |
| collection | MIT |
| description | Modeling automation as factor-augmenting technological change has unappealing implications. Instead, modeling it as the process of machines replacing tasks previously performed by labor is both descriptively realistic and leads to distinct and plausible predictions. In contrast to factor-augmenting technological change, the automation of tasks always reduces the labor share and can reduce the equilibrium wage (for realistic parameter values). This approach to automation underscores the role of new tasks, changes in the comparative advantage of labor, the possibility that machines become more productive in automated tasks, and the elasticity of substitution and capital accumulation in the adjustment of the economy. |
| first_indexed | 2024-09-23T12:18:01Z |
| format | Article |
| id | mit-1721.1/125740 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T12:18:01Z |
| publishDate | 2020 |
| publisher | American Economic Association |
| record_format | dspace |
| spelling | mit-1721.1/1257402022-10-01T08:55:34Z Modeling Automation Acemoglu, K. Daron Restrepo, Pascual Massachusetts Institute of Technology. Department of Economics Modeling automation as factor-augmenting technological change has unappealing implications. Instead, modeling it as the process of machines replacing tasks previously performed by labor is both descriptively realistic and leads to distinct and plausible predictions. In contrast to factor-augmenting technological change, the automation of tasks always reduces the labor share and can reduce the equilibrium wage (for realistic parameter values). This approach to automation underscores the role of new tasks, changes in the comparative advantage of labor, the possibility that machines become more productive in automated tasks, and the elasticity of substitution and capital accumulation in the adjustment of the economy. 2020-06-09T14:46:55Z 2020-06-09T14:46:55Z 2018-05 2019-10-18T15:39:01Z Article http://purl.org/eprint/type/JournalArticle 2574-0768 2574-0776 https://hdl.handle.net/1721.1/125740 Acemoglu, Daron, and Restrepo, Pascual. "Modeling Automation." AEA Papers and Proceedings, 108 (May 2018): 48-53. ©2018 American Economic Association. en http://dx.doi.org/10.1257/pandp.20181020 AEA Papers and Proceedings Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association |
| spellingShingle | Acemoglu, K. Daron Restrepo, Pascual Modeling Automation |
| title | Modeling Automation |
| title_full | Modeling Automation |
| title_fullStr | Modeling Automation |
| title_full_unstemmed | Modeling Automation |
| title_short | Modeling Automation |
| title_sort | modeling automation |
| url | https://hdl.handle.net/1721.1/125740 |
| work_keys_str_mv | AT acemoglukdaron modelingautomation AT restrepopascual modelingautomation |