 The impact of artificial intelligence on economic growth and welfareJournal of Macroeconomics, 2021, vol. 69, issue C Abstract: Focusing on the self-accumulation ability and the nonrival characteristic of artificial intelligence (AI), this paper develops a three-sector endogenous growth model and investigates the impact of the development of AI along the transitional dynamics path and the balanced growth path. The development of AI can increase economic growth along the transitional dynamics path, and can increase household short-run utility if an increase in the accumulation of AI is due to the rising productivity in the goods or AI sector, but can be detrimental to household short-run utility if an increase in the accumulation of AI is because firms use more AI to replace human labor. In addition, the development of AI is not necessarily beneficial to household welfare in the long run. The main results are unaffected when considering the case where AI can improve the accumulation of human capital, the traditional research and development model, and different kinds of physical capital. Keywords: Artificial intelligence; Human capital; Economic growth; Welfare (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:69:y:2021:i:c:s0164070421000458 DOI: 10.1016/j.jmacro.2021.103342 Access Statistics for this article Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos More articles in Journal of Macroeconomics from Elsevier |
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