Automation and Welfare: The Role of Bequests and Education

By Manuk Ghazanchyan, Alexei Goumilevski, Alex Mourmouras

January 12, 2024

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Format: Chicago

Manuk Ghazanchyan, Alexei Goumilevski, and Alex Mourmouras. Automation and Welfare: The Role of Bequests and Education, (USA: International Monetary Fund, 2024) accessed November 9, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper examines the welfare effects of automation in neoclassical growth models with and without intergenerational transfers. In a standard overlapping generations model without such transfers, improvements in automation technologies that would lower welfare can be mitigated by shifts in labor supply related to demographics or pandemics. With perfect intergenerational transfers based on altruism, automation could raise the well-being of all generations. With imperfect altruism, fiscal transfers (universal basic income) and public policies to expand access to education opportunities can alleviate much of the negative effect of automation.

Subject: Automation, Consumption, Education, Human capital, Income, Labor, National accounts, Technology

Keywords: Aging, Altruism, Appendix B. Replicating Kotlikoff, Automation, Automation technology, Consumption, Education, Fiscal Policy, Global, Human capital, IMF working papers, Income, Overlapping Generations, Production function, S model, Welfare effect

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2024/011
Stock No:

WPIEA2024011
ISBN:

9798400263026
ISSN:

1018-5941

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