Growth Effects of Additive and Multiplicative Robots alongside Conventional Machines
Hian Teck Hoon ()
Additional contact information
Hian Teck Hoon: School of Economics, Singapore Management University
No 21-2019, Economics and Statistics Working Papers from Singapore Management University, School of Economics
We study the effects of introducing two different types of robots (additive and multiplicative) in an infinitely lived one-sector aggregative model with malleable capital on wages. The wage effects of these two polar cases are dramatically different. Given malleable capital that can be retrofitted for use either as conventional machines or as robots, we show that when it is profitable for firms to adopt additive robots in the production process, the real wage drops on impact and remains permanently at the lower level even as total malleable capital accumulates. However, when multiplicative robots are adopted, we show that while the immediate impact on the real wage is ambiguous, the real wage enjoys a positive trend growth even in the absence of steady technological progress.
Pages: 23 pages
New Economics Papers: this item is included in nep-gro and nep-sea
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://ink.library.smu.edu.sg/soe_research/2327/ Full text (text/plain)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:smuesw:2019_021
Access Statistics for this paper
More papers in Economics and Statistics Working Papers from Singapore Management University, School of Economics 90 Stamford Road, Sigapore 178903. Contact information at EDIRC.
Bibliographic data for series maintained by Cheong Pei Qi ().