IMF Working Papers

Automation and Welfare: The Role of Bequests and Education

By Manuk Ghazanchyan, Alexei Goumilevski, Alex Mourmouras

January 12, 2024

Download PDF Order a Print Copy
Order a Print Copy

Preview Citation

Format: Chicago

Manuk Ghazanchyan, Alexei Goumilevski, and Alex Mourmouras. Automation and Welfare: The Role of Bequests and Education, (USA: International Monetary Fund, 2024) accessed December 21, 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:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2024/011

  • Stock No:

    WPIEA2024011

  • ISBN:

    9798400263026

  • ISSN:

    1018-5941

You May Also Be Interested In...

Industrialization and the Big Push: Theory and Evidence from South Korea

December 20, 2024

Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries

December 19, 2024

United Republic of Tanzania: Forth Review Under the Extended Credit Facility Arrangement and First Review Under the Resilience and Sustainability Facility Arrangement -Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania

December 18, 2024

Jordan: 2024 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Jordan

December 17, 2024