Template-type: ReDIF-Paper 1.0
Author-Name: Nomaler, Onder
Author-Email: o.nomaler@tue.nl
Author-Workplace-Name: ECIS, TU Eindhoven
Author-Name: Verspagen, Bart
Author-Email: verspagen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Title: Perpetual growth, distribution, and robots
Abstract: The current literature on the economic effects of machine learning, 
	 robotisation and artificial intelligence suggests that there may be an 
	 upcoming wave of substitution of human labour by machines (including 
	 software). We take this as a reason to rethink the traditional ways in 
	 which technological change has been represented in economic models. In 
	 doing so, we contribute to the recent literature on so-called perpetual 
	 growth, i.e., growth of per capita income without technological 
	 progress. When technology embodied in capital goods are sufficiently 
	 advanced, per capita growth becomes possible with a non-progressing 
	 state of technology. We present a simple Solow-like growth model that 
	 incorporates these ideas. The model predicts a rising wage rate but 
	 declining share of wage income in the steady state growth path. We 
	 present simulation experiments on several policy options to combat the 
	 inequality that results from this, including a universal basic income as 
	 well as an option in which workers become owners of "robots".
Classification-JEL: O15, O41, O33, E25, P17
Keywords: perpetual economic growth, economic effects of robots, income distribution
Series: UNU-MERIT Working Papers
Creation-Date: 20180523
Number: 2018-023
File-URL: https://unu-merit.nl/publications/wppdf/2018/wp2018-023.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2018023