EconPapers    
Economics at your fingertips  
 

Fragile Robots, Economic Growth and Convergence

Torben Klarl

No 2202, Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics

Abstract: Technological progress leads to the development of robots that are more error-prone and fragile than their predecessors. As a consequence, the utilization of the existing automation capital stock is associated with higher wear and tear, CPU overload or communication downtime and, as a consequence, an increase of depreciation costs. This in turn affect new investments in the future. Considering a growth model with physical and automation capital utilization, we argue that in a fully automated society, the utilized automation capital is a perfect substitute for labor, not the automation capital stock per se. We show that it is not necessarily the introduction of capital utilization by itself, but the relationship between the elasticities of utilization of automation and physical capital that plays a crucial role in slowing down the convergence speed in a model that reflects an automated society.

Keywords: Automation; Capital Utilization; Perpetual Economic Growth (search for similar items in EconPapers)
JEL-codes: O40 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2022-03
New Economics Papers: this item is included in nep-gro
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Economic Modelling, 112, p.105850.

Downloads: (external link)
https://media.suub.uni-bremen.de/bitstream/elib/58 ... gence_Klarl_IERP.pdf

Related works:
Journal Article: Fragile robots, economic growth and convergence (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:atv:wpaper:2202

DOI: 10.26092/elib/1479

Access Statistics for this paper

More papers in Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Matheus Eduardo Leusin (leusin@uni-bremen.de).

 
Page updated 2024-12-28
Handle: RePEc:atv:wpaper:2202