{"title":"Frictions and the diffusion of automation","authors":"Nikolaos Charalampidis","doi":"10.1111/manc.12461","DOIUrl":null,"url":null,"abstract":"<p>This paper studies the implications of business cycle frictions for the diffusion of permanent changes in automation. Incorporating task-based production in different versions of the New Keynesian model reveals considerable short-run implications. Price-distorting nominal rigidities amplify the labor displacement and attenuate the productivity and welfare gains of automation during the transition to the new equilibrium. They exacerbate the falls in the labor income share, the job finding probability, the value of long-term contracts, and labor market tightness. The inflation response follows a J-curve. Frictions in capital supply and wage rigidities amplify the labor displacement and attenuate the productivity gains too.</p>","PeriodicalId":47546,"journal":{"name":"Manchester School","volume":"92 2","pages":"148-170"},"PeriodicalIF":0.7000,"publicationDate":"2023-10-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/manc.12461","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Manchester School","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/manc.12461","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper studies the implications of business cycle frictions for the diffusion of permanent changes in automation. Incorporating task-based production in different versions of the New Keynesian model reveals considerable short-run implications. Price-distorting nominal rigidities amplify the labor displacement and attenuate the productivity and welfare gains of automation during the transition to the new equilibrium. They exacerbate the falls in the labor income share, the job finding probability, the value of long-term contracts, and labor market tightness. The inflation response follows a J-curve. Frictions in capital supply and wage rigidities amplify the labor displacement and attenuate the productivity gains too.
期刊介绍：
The Manchester School was first published more than seventy years ago and has become a distinguished, internationally recognised, general economics journal. The Manchester School publishes high-quality research covering all areas of the economics discipline, although the editors particularly encourage original contributions, or authoritative surveys, in the fields of microeconomics (including industrial organisation and game theory), macroeconomics, econometrics (both theory and applied) and labour economics.
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