EconPapers    
Economics at your fingertips  
 

On the possibility of automation-induced stagnation

Emanuel Gasteiger and Klaus Prettner

No 07-2017, Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences

Abstract: We analyze the long-run growth effects of automation in the standard overlap- ping generations framework. We show that, in contrast to other neoclassical models of capital accumulation, automation does not promote growth but induces economic stagnation. The reason is that automation suppresses wages, which are the only source of investment in the overlapping generations framework.

Keywords: automation; robots; investment; stagnation; economic growth; overlapping generations model (search for similar items in EconPapers)
JEL-codes: J10 J20 O14 O33 O41 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-dge, nep-fdg, nep-gro and nep-pay
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/155784/1/882225014.pdf (application/pdf)

Related works:
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:zbw:hohdps:072017

Access Statistics for this paper

More papers in Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2025-01-29
Handle: RePEc:zbw:hohdps:072017