Automation and Economic Growth in a Task-based Neoclassical Growth Model

This paper incorporates a task-based approach into a neoclassical model and analyze how automation affects economic growth. We found that if task producers smoothly adopt automation technology along the capital accumulation path, sustained growth is possible even without technological progress. This result is brought about by the fact that task automation makes the aggregated production function linear. In addition, we demonstrate that both the rental price of capital and the wage are constant on the growth path. In sum, while the interaction between task automation and capital accumulation is one pathway for generating sustained growth, the wage is suppressed in the process of growth