Dynamic Analysis of Education, Automation, and Economic Growth

Kohei Okada ()
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Kohei Okada: Graduate School of Economics, Osaka University

No 20-09, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Ever since the onset of the Industrial Revolution,automation has had signicant impacts on economic growth,labor,the education decision-making of individuals,and education policy. In this study,we aim to examine the complex relationship between education,automation,and economic growth. We employ an overlapping-generations model with endogenous education decision-making and automation. Our fndings show that an economy converges to a steady state where automation occurs and per capita output is high if productivity is high.On the other hand,we show that an economy converges to a steady state where automation does not occur and per capita output is low if productivity is low. In addition,we examine how education subsidy policy affects the economy when productivity is low. If the efficiency of education is high,the government can steer an economy away from a steady state without automation by investing more resources in education.If the efficiency of education is low,there can exist multiple steady states where automation occurs in one but not in the other.

Keywords: Education; Automation; Economicgrowth (search for similar items in EconPapers)
JEL-codes: E22 J24 O10 O30 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2020-05
New Economics Papers: this item is included in nep-dge, nep-gro, nep-lma and nep-mac
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