 Robots and humans: The role of fiscal and monetary policies in an endogenous growth modelÓscar Afonso, Elena Sochirca and Pedro Cunha Neves Mathematical Social Sciences, 2025, vol. 133, issue C, 49-59 Abstract: In this paper we develop an endogenous growth model to analyze how fiscal and monetary policies can manage the macroeconomic effects of the robotization process. We consider that unskilled labor can be replaced by robots and that: (i) the government collects tax revenues to invest in social capital and compensate those who lose their jobs; (ii) there is monetary policy with cash-in-advance restrictions; (iii) social capital contributes to increasing technological-knowledge progress. Our results confirm that robotization stimulates economic growth, but contributes to widening wage inequality between skilled and unskilled workers. We show that, under specific circumstances, an expansionary monetary policy or a more progressive taxation can attenuate such widening effect. We also show that public investment in social capital and public transfers to those who lose their jobs play a crucial role in attenuating the negative consequences of rising unemployment caused by robotization. Keywords: Robotization; Social capital; Fiscal policy; Monetary policy; Growth; Inequality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:133:y:2025:i:c:p:49-59 DOI: 10.1016/j.mathsocsci.2024.11.005 Access Statistics for this article Mathematical Social Sciences is currently edited by J.-F. Laslier More articles in Mathematical Social Sciences from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.