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ResearchPaper
2017

On the possibility of automation-induced stagnation

Abstract (English)

We analyze the long-run growth effects of automation in the standard overlapping 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.

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Notes

Publication license

Publication series

Hohenheim discussion papers in business, economics and social sciences; 2017,07

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Standardized keywords (GND)

Sustainable Development Goals

BibTeX

@techreport{Gasteiger2017, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/6128}, author = {Gasteiger, Emanuel and Prettner, Klaus}, title = {On the possibility of automation-induced stagnation}, year = {2017}, school = {Universität Hohenheim}, series = {Hohenheim discussion papers in business, economics and social sciences}, }
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