References of "Irmen, Andreas 50002026"
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See detailZur Zukunft der Telearbeit ("On the Future of Teleworking")
Irmen, Andreas UL; Bauler, André

Article for general public (2020)

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See detailThe Supply of Hours Worked and Endogenous Growth Cycles
Irmen, Andreas UL

Presentation (2020)

Detailed reference viewed: 24 (0 UL)
See detailExplaining the Decline in the US Labor Share: Taxation and Automation
Irmen, Andreas UL

Presentation (2020)

Detailed reference viewed: 26 (1 UL)
See detailThe World Economic History in 4 Figures, 1 Photo, and 1 Table
Irmen, Andreas UL

Conference given outside the academic context (2020)

Detailed reference viewed: 45 (0 UL)
See detailEndogenous Task-Based Technical Change - Factor Scarcity and Factor Prices -
Irmen, Andreas UL

E-print/Working paper (2020)

This paper develops a static model of endogenous task-based technical progress to study how factor scarcity induces technological progress and changes in factor prices. The equilibrium technology is multi ... [more ▼]

This paper develops a static model of endogenous task-based technical progress to study how factor scarcity induces technological progress and changes in factor prices. The equilibrium technology is multi-dimensional and not strongly factor-saving in the sense of Acemoglu (2010). Nevertheless, labor scarcity induces labor productivity growth. There is a weak but no strong absolute equilibrium bias. This model provides a plausible interpretation of the famous contention of Hicks (1932) about the role of factor prices and factor endowments for induced innovations. It may serve as a micro-foundation for canonical macro-economic models. Moreover, it accommodates features like endogenous factor supplies and a binding minimum wage. [less ▲]

Detailed reference viewed: 33 (1 UL)
See detailThe Changing Future of Work
Irmen, Andreas UL

Conference given outside the academic context (2020)

Detailed reference viewed: 40 (1 UL)
See detailAutomation, Growth, and Factor Shares in the Era of Population Aging
Irmen, Andreas UL

Presentation (2020)

Detailed reference viewed: 24 (0 UL)
See detailAutomation, Growth, and Factor Shares in the Era of Population Aging
Irmen, Andreas UL

Presentation (2020)

Detailed reference viewed: 23 (0 UL)
See detailExplaining the Decline in the US Labor Share: Taxation and Automation DEM Discussion Paper 20-2020, University of Luxembourg
Irmen, Andreas UL; Heer, Burkhard; Süssmuth, Bernd

E-print/Working paper (2020)

This study provides evidence for the US that the secular decline in the labor share is not only explained by technical change or globalization, but also by the dynamics of factor taxation, automation ... [more ▼]

This study provides evidence for the US that the secular decline in the labor share is not only explained by technical change or globalization, but also by the dynamics of factor taxation, automation capital, and population growth. First, we empirically find indications of co-integration for the 1974-2008 period. Permanent effects on factor shares emanate from relative factor taxation. The latter also have a lasting effect on the use of robots. Variance decompositions reveal that taxing contributes to changes in the two income shares and in automation capital. Second, we analyse and calibrate a neoclassical growth model extended to include factor taxation, automation capital, and capital adjustment costs. The model is able to replicate the dynamics of the observed functional income distribution in the US during the 1965-2015 period. Counterfactual experiments suggest that the fall in the labor share would have been significantly smaller if labor and capital income tax rates had remained at their respective level of the 1960s. [less ▲]

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See detailAutomation, Growth, and Factor Shares in the Era of Population Aging
Irmen, Andreas UL

E-print/Working paper (2020)

How does population aging affect economic growth and factor shares in times of increasingly automatable production processes? The present paper addresses this question in a new macroeconomic model of ... [more ▼]

How does population aging affect economic growth and factor shares in times of increasingly automatable production processes? The present paper addresses this question in a new macroeconomic model of automation where competitive firms perform tasks to produce output. Tasks require labor and machines as inputs. New machines embody superior technological knowledge and substitute for labor in the performance of tasks. The incentive to automate is stronger if wages are higher. Automation is shown to boost the aggregate demand for labor if and only if the incentives to automate are strong enough and to reduce the labor share. These predictions obtain even though automation is labor-augmenting in the reduced-form production function. Population aging due to a higher longevity or a decline in fertility may strengthen or weaken the incentives to automate. Irrespective of its source, population aging is predicted to increase the growth rate of per-capita GDP in the short and in the long run. The short-run effect of higher longevity on the labor share is positive whereas the effect of a declining fertility is negative. In the long run, population aging reduces the labor share. [less ▲]

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See detailThe Supply of Hours Worked and Endogenous Growth Cycles
Irmen, Andreas UL; Iong, Ka-Kit UL

E-print/Working paper (2020)

We show that declining hours of work per worker in conjunction with a growing work force may give rise to growth cycles. This is accomplished in an overlapping generations model where individuals are ... [more ▼]

We show that declining hours of work per worker in conjunction with a growing work force may give rise to growth cycles. This is accomplished in an overlapping generations model where individuals are endowed with Boppart-Krusell preferences (Boppart and Krusell (2020)), i. e., the wage elasticity of their supply of hours worked is negative. On the supply side, economic growth is due to the expansion of consumption-good varieties through endogenous research. We show that a sufficiently negative equilibrium elasticity of the individual supply of hours worked to an expansion in the set of consumption-good varieties opens up the possibility of growth cycles where the economy fluctuates between two regimes, one with and the other without an active research sector. We identify period-2 and period-3 cycles, conclude with Li and Yorke (1975) that cycles of any periodicity exists, and generalize our findings to period-n cycles. We show that the possibility of cycles occurs under empirically plausible conditions. Throughout, we emphasize that the economics of cycles is linked to the intergenerational trade of shares and their pricing in the asset market. [less ▲]

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See detailTasks, Technology, and Factor Prices in the Neoclassical Production Sector
Irmen, Andreas UL

E-print/Working paper (2020)

This paper introduces tasks into the neoclassical production sector. Competitive firms choose the profit-maximizing amounts of factor-specific tasks that determine their factor demands and output supplies ... [more ▼]

This paper introduces tasks into the neoclassical production sector. Competitive firms choose the profit-maximizing amounts of factor-specific tasks that determine their factor demands and output supplies. We show that the effect of factor-augmenting technical change on relative and absolute factor prices can be decomposed into a productivity effect and a task-demand effect of opposite sign. These effects appear since the novel task-based approach distinguishes between the demands for tasks and the demands for factors. This perspective provides a new intuition for the emergence of relative and absolute factor biases and the role of the elasticity of substitution. [less ▲]

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See detailEndogenous Factor Income Distribution: Piketty meets Romer
Irmen, Andreas UL; Tabakovic, Amer UL

in Economic Inquiry (2020)

What is the relationship between the economy’s long-run growth rate, its capital-income ratio, and its factor income distribution? We argue that a satisfactory answer must be derived in an analytical ... [more ▼]

What is the relationship between the economy’s long-run growth rate, its capital-income ratio, and its factor income distribution? We argue that a satisfactory answer must be derived in an analytical framework that treats the growth and the savings rate as endogenous. From this perspective we scrutinize Piketty’s (2014) theory put forth in his book Capital in the Twenty-First Century in a richly parameterized variant of Romer’s (1990) seminal model with and without population growth. The economy’s growth and its savings rate are exogenous in Piketty’s theory and endogenous in Romer’s. We find that a smaller long-run growth rate may be associated with a smaller capital-income ratio. Hence, the key implication of Piketty’s Second Fundamental Law of Capitalism does not hold. Moreover, in contrast to Piketty’s theory, a smaller long-run growth rate may go together with a greater or a smaller capital share. [less ▲]

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See detailCatalyzing the Benefits of Globalization - Panel Chair of the session "Revitalizing Economic Grwoth"
Irmen, Andreas UL

Conference given outside the academic context (2019)

Detailed reference viewed: 21 (0 UL)
See detailRents and Research in Modern Growth Theory
Irmen, Andreas UL

Presentation (2019)

Detailed reference viewed: 50 (1 UL)
Full Text
See detailIndividual Attitudes towards Immigration in Aging Populations
Irmen, Andreas UL; Cömertpay, Rana UL; Litina, Anastasia UL

E-print/Working paper (2019)

This research empirically establishes the hypothesis that the process of population aging in a society as a whole affects the attitudes of its members towards immigration. Hence, an aging social ... [more ▼]

This research empirically establishes the hypothesis that the process of population aging in a society as a whole affects the attitudes of its members towards immigration. Hence, an aging social environment exerts an effect on the attitudes of individuals towards immigration after accounting for their age and other individual characteristics. We test this hypothesis in a multilevel analysis of individuals living in 25 European OECD countries over the period 2002-2017. Our measure of “societal population aging” is the old-age dependency ratio. “Attitudes” are taken from immigration related questions in eight consecutive rounds of the European Social Survey. For these attitudes we find non-linear, U-shaped relationships. Hence, the effect of societal population aging on individual attitudes towards immigration is negative in young societies and positive in old ones. [less ▲]

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See detailAutomation, Growth, and Factor Shares in the Era of Population Aging
Irmen, Andreas UL

Presentation (2019)

How does population aging affect factor shares and economic growth in times of declining investment good prices and increasingly automated production processes? The present paper addresses this question ... [more ▼]

How does population aging affect factor shares and economic growth in times of declining investment good prices and increasingly automated production processes? The present paper addresses this question in a new model of automation where competitive firms perform tasks to produce output. Tasks require labor and machines as inputs. New machines embody superior technological knowledge and substitute for labor in the performance of tasks. The incentive to automate is stronger when the expected wage is higher or when the price of an automation investment is lower. Automation is shown to i) boost the aggregate demand for labor if the incentives to automate are strong enough and ii) reduce the labor share. These predictions obtain even though automation is labor-augmenting in the economy’s reduced-form production function. In the short run, population aging weakens the incentives to automate and increases the labor share as individuals augment their labor supply. These implications may be neutralized if, at the same time, the price of investment goods declines. In the log-run, population aging and a lower price of investment goods are reinforcing. Both imply more automation, a lower labor share, and faster economic growth. [less ▲]

Detailed reference viewed: 54 (1 UL)