The Oxford Martin Programme on - Technological and Economic Change

the quantity of output is non-decreasing in the quantity of inputs and in the level of productivity. [...] The more progressive the tax system at the top of the distribution, the 8 more likely the effect would be positive. [...] 9 The direction of the total effect of automation on aggregate nominal income depends on the net impact of the replacement and reinstatement effect on factor income from labor and capital, ∂(wcLc+rcKc)a ≶ 0.∂Kc The second part of the real income effect is a productivity-induced change in the aggre- gate price level. [...] R and ICT capture the robot and ICT density as the ratio of the number of operational robots and ICT capital, respectively, over the number of hours worked in the economy. [...] Given the limitations of measuring productivity and the non-persistence of the effect it is hard to derive conclusions based on this finding in the context of the real income effect.