Automation and Welfare: The Role of Bequests and Education

Manuk Ghazanchyan, Alexei Goumilevski and Alex Mourmouras

No 2024/011, IMF Working Papers from International Monetary Fund

Abstract: This paper examines the welfare effects of automation in neoclassical growth models with and without intergenerational transfers. In a standard overlapping generations model without such transfers, improvements in automation technologies that would lower welfare can be mitigated by shifts in labor supply related to demographics or pandemics. With perfect intergenerational transfers based on altruism, automation could raise the well-being of all generations. With imperfect altruism, fiscal transfers (universal basic income) and public policies to expand access to education opportunities can alleviate much of the negative effect of automation.

Keywords: Automation; Aging; Altruism; Fiscal Policy; Education; Overlapping Generations; appendix B. Replicating Kotlikoff; automation technology; IMF working papers; welfare effect; S model; production function; Income; Human capital; Consumption; Global (search for similar items in EconPapers)
Pages: 41
Date: 2024-01-12
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