{"id":3836,"date":"2023-08-22T15:43:10","date_gmt":"2023-08-22T13:43:10","guid":{"rendered":"https:\/\/www.uni.lu\/fdef-en\/?post_type=research-groups&#038;p=3836"},"modified":"2025-06-18T15:53:07","modified_gmt":"2025-06-18T13:53:07","slug":"economic-growth-and-technological-progress","status":"publish","type":"research-groups","link":"https:\/\/www.uni.lu\/fdef-en\/research-groups\/dynamic-macroeconomics\/economic-growth-and-technological-progress\/","title":{"rendered":"Economic Growth and Technological Progress"},"content":{"rendered":"<div class=\"section py-0 static\">\n<section class=\"py-0 wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\"><!-- SecondaryNavigationMirror --><div class=\"js-secondary-nav--sticky wp-block-unilux-blocks-secondary-navigation\" id=\"e3b1dc28-2448-4781-b3bc-d22656a333ef\">\n    <nav id=\"secondary-navigation\" role=\"navigation\" aria-label=\"Secondary menu\" class=\"secondary-nav\">\n        <button class=\"secondary-nav__button btn btn-solid--primary w-full\" aria-expanded=\"false\" aria-controls=\"secondary-navigation__list\" title=\"The selected page is Economic growth and technological progress\" type=\"button\">\n            <span class=\"btn__name mr-auto\">Economic growth and technological progress<\/span>\n            <svg aria-hidden=\"true\" focusable=\"false\" class=\"icon icon-outline icon--xs\">\n                <use xlink:href=\"https:\/\/www.uni.lu\/wp-content\/themes\/unilux-theme\/assets\/images\/icons\/icons-outline.svg#icon--arrow-down\" \/>\n            <\/svg>\n        <\/button>\n\n        <ul id=\"secondary-navigation__list\" class=\"secondary-nav__list\">\n            <li class=\"secondary-nav__item\">\n    <a href=\"https:\/\/www.uni.lu\/fdef-en\/research-groups\/dynamic-macroeconomics\/\" target=\"\" rel=\"noreferrer noopener\" class=\"secondary-nav__link \">\n        <svg aria-hidden=\"true\" focusable=\"false\" class=\"icon icon-outline icon--xs\">\n            <use xlink:href=\"https:\/\/www.uni.lu\/wp-content\/themes\/unilux-theme\/assets\/images\/icons\/icons-outline.svg#icon--arrow-right\" \/>\n        <\/svg>\n        <span class=\"secondary-nav__name\">Overview<\/span>\n    <\/a>\n<\/li>\n<li class=\"secondary-nav__item\">\n    <a href=\"https:\/\/www.uni.lu\/fdef-en\/research-groups\/dynamic-macroeconomics\/research\/\" target=\"\" rel=\"noreferrer noopener\" class=\"secondary-nav__link \">\n        <svg aria-hidden=\"true\" focusable=\"false\" class=\"icon icon-outline icon--xs\">\n            <use xlink:href=\"https:\/\/www.uni.lu\/wp-content\/themes\/unilux-theme\/assets\/images\/icons\/icons-outline.svg#icon--arrow-right\" \/>\n        <\/svg>\n        <span class=\"secondary-nav__name\">Research<\/span>\n    <\/a>\n<\/li>\n<li class=\"secondary-nav__item\">\n    <a href=\"https:\/\/www.uni.lu\/fdef-en\/research-groups\/dynamic-macroeconomics\/economic-growth-and-technological-progress\/\" target=\"\" rel=\"noreferrer noopener\" class=\"secondary-nav__link isactived\" aria-current=\"page\">\n        <svg aria-hidden=\"true\" focusable=\"false\" class=\"icon icon-outline icon--xs\">\n            <use xlink:href=\"https:\/\/www.uni.lu\/wp-content\/themes\/unilux-theme\/assets\/images\/icons\/icons-outline.svg#icon--arrow-right\" \/>\n        <\/svg>\n        <span class=\"secondary-nav__name\">Economic growth and technological progress<\/span>\n    <\/a>\n<\/li>\n        <\/ul>\n    <\/nav>\n<\/div>\n<!-- end SecondaryNavigationMirror --><\/div><\/section>\n\n\n\n<section class=\"wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\">\n<h1 class=\"has-text-align-left wp-block-unilux-blocks-heading\"        id=\"economic-growth-and-technological-progress\"\n    >\nEconomic Growth and Technological Progress<\/h1>\n\n\n\n<p>Artificial intelligence, robotics and automation in general affect labor markets, an economy&#8217;s income<br>and wealth distribution, and economic growth. <\/p>\n\n\n\n<ul class=\"ulux-list\">\n<li class=\"ulux-list-item\">How will artificial intelligence affect the productivity of labor and capital? <\/li>\n\n\n\n<li class=\"ulux-list-item\">Will robotics and automation render labor obsolete? <\/li>\n\n\n\n<li class=\"ulux-list-item\">Will technological progress alleviate the pressures on the welfare state caused by population aging?<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<section class=\"py-0 wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\">\n<h2 class=\"has-text-align-left wp-block-unilux-blocks-heading\"        id=\"automation-growth-factor-shares\"\n    >\nAutomation, Growth, Factor Shares<\/h2>\n\n\n\n<p><strong>How does population aging affect economic growth and factor shares in times of increasingly<br>automatable production processes? <\/strong><\/p>\n\n\n\n<p>The present paper addresses this question in a new macroeconomic model of automation where competitive firms perform tasks to <strong>produce output<\/strong>. <br>Tasks require <strong>labor<\/strong> and <strong>machines<\/strong> as inputs. New machines embody superior technological knowledge and substitute for labor in the performance of tasks. Automation is labor-augmenting in the reduced-form aggregate production function. If wages increase then the incentive to automate becomes stronger.<br><\/p>\n\n\n\n<p>Moreover, <\/p>\n\n\n\n<ul class=\"ulux-list\">\n<li class=\"ulux-list-item\">the <strong>labor share<\/strong> declines even though the aggregate production function is Cobb\u2013Douglas<\/li>\n\n\n\n<li class=\"ulux-list-item\">Population aging due to a higher longevity <strong>reduces automation<\/strong> in the short and <strong>promotes it<\/strong> in the long run<\/li>\n\n\n\n<li class=\"ulux-list-item\">It <strong>boosts the growth rate<\/strong> of absolute and per-capita GDP in the short and the long run,<strong> lifts the labor share<\/strong> in the short and reduces it in the long run<\/li>\n\n\n\n<li class=\"ulux-list-item\">Population aging due to a decline in fertility:<br>&#8211; increases automation<br>&#8211; reduces the growth rate of GDP<br>&#8211; and lowers the labor share in the short and the long run. <\/li>\n\n\n\n<li class=\"ulux-list-item\">In the short run, it may or may not increase the <strong>growth rate of per-capita GDP<\/strong>, in the long run it unequivocally accelerates <strong>per-capita GDP growth<\/strong>.<\/li>\n<\/ul>\n<\/div><\/section>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":33,"featured_media":0,"parent":4152,"menu_order":2,"template":"","meta":{"featured_image_focal_point":[],"show_featured_caption":false,"ulux_newsletter_groups":"","uluxPostTitle":"Dynamic Macroeconomics","uluxPrePostTitle":"Research Group","_trash_the_other_posts":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false},"field-of-interest":[],"organisation":[],"authorship":[33,100,98,99,413],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Economic Growth and Technological Progress - Dynamic Macroeconomics - FDEF research group I University of Luxembourg<\/title>\n<meta name=\"description\" content=\"Artificial intelligence, robotics and automation in general affect labor markets, an economy&#039;s incomeand wealth distribution, and economic growth. 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