Browsing by Person "Gasteiger, Emanuel"

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    On the possibility of automation-induced stagnation
    (2017) Gasteiger, Emanuel; Prettner, Klaus
    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.