Production Function through Automation in a Task-Based Model
21 Pages Posted: 9 Oct 2019
Date Written: September 27, 2019
Abstract
The aim of this study is to connect two approaches that examine automation. The first uses a task-based model, while the second uses a variant of the canonical constant-elasticity-of-substitution (CES) production function. We employ a task-based model and derive a neoclassical production function through automation. This derivation depends on only one assumption about the arrangement of tasks. Under a trade-off in the efficiency between capital and labor, we also consider a CES production function and relate the elasticity of substitution to automation.
Keywords: Automation; Task-based model; CES production function
JEL Classification: E23; O30, O33.
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