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You have been terminated: robots, work, and taxation

Author

Listed:
  • Gizem Akar

    (WU Vienna University of Economics and Business)

  • Giorgia Casalone

    (UPO University of Eastern Piedmont)

  • Martin Zagler

    (WU Vienna University of Economics and Business
    UPO University of Eastern Piedmont)

Abstract

We present a three sector OLG model with a homogeneous output good that is produced with traditional or robot technology. The traditional sector produces with labor and capital, whereas the modern sector employs robots instead of labor. Robots and workers are modeled as perfect substitutes to investigate whether economic policy under the harshest assumptions is able to prevent the ascent of a robotized economy. While we find that the transition is inevitable, higher taxes on robots and revenues can slow down the process. We also that the economy will switch from an exogenous growth model based on TFP to an endogenous growth model due to constant returns with respect to reproducible factors of production as it becomes fully robotized.

Suggested Citation

  • Gizem Akar & Giorgia Casalone & Martin Zagler, 2023. "You have been terminated: robots, work, and taxation," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 70(3), pages 283-300, September.
  • Handle: RePEc:spr:inrvec:v:70:y:2023:i:3:d:10.1007_s12232-023-00419-6
    DOI: 10.1007/s12232-023-00419-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Robots; Singularity; Robot taxation; Economic growth;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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