Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach
This study explores the often-overlooked influence of artificial intelligence (AI) on wealth distribution. Using a continuous-time heterogeneous agent dynamic general equilibrium model, we investigate AI's impact on production technology as a form of biased technological progress. Our findings...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-01-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844025003238 |
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| author | Fang Liu Chen Liang |
| author_facet | Fang Liu Chen Liang |
| author_sort | Fang Liu |
| collection | DOAJ |
| description | This study explores the often-overlooked influence of artificial intelligence (AI) on wealth distribution. Using a continuous-time heterogeneous agent dynamic general equilibrium model, we investigate AI's impact on production technology as a form of biased technological progress. Our findings highlight a temporal dichotomy in AI's effects on wealth inequality: in the short term, AI exacerbates disparities in wealth distribution, while the long-term outcomes depend on the extent of AI's influence across different technological domains. The nuanced nature of AI-driven technological progress leads to distinct consequences for the rate of return on capital—showing short-term increases across all forms of technological progress, but with varying long-term effects. Based on these results, we propose policy recommendations for China to leverage AI for economic growth while mitigating inequality. This research provides a comprehensive analysis of AI's role in wealth distribution, offering valuable insights for both academic inquiry and policy formulation. |
| format | Article |
| id | doaj-art-a8b5c52f640c4cbb9c0e11982899cdaf |
| institution | Kabale University |
| issn | 2405-8440 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj-art-a8b5c52f640c4cbb9c0e11982899cdaf2025-02-02T05:28:36ZengElsevierHeliyon2405-84402025-01-01112e41943Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approachFang Liu0Chen Liang1Economic School of Changzhou University, China; Corresponding author. Changzhou University, No.1 Gehu Road, Wujin District, Changzhou City, Jiangsu Province, China.379134763@qq.comFinancial Technology School of Shenzhen University, ChinaThis study explores the often-overlooked influence of artificial intelligence (AI) on wealth distribution. Using a continuous-time heterogeneous agent dynamic general equilibrium model, we investigate AI's impact on production technology as a form of biased technological progress. Our findings highlight a temporal dichotomy in AI's effects on wealth inequality: in the short term, AI exacerbates disparities in wealth distribution, while the long-term outcomes depend on the extent of AI's influence across different technological domains. The nuanced nature of AI-driven technological progress leads to distinct consequences for the rate of return on capital—showing short-term increases across all forms of technological progress, but with varying long-term effects. Based on these results, we propose policy recommendations for China to leverage AI for economic growth while mitigating inequality. This research provides a comprehensive analysis of AI's role in wealth distribution, offering valuable insights for both academic inquiry and policy formulation.http://www.sciencedirect.com/science/article/pii/S2405844025003238JELE12E13 |
| spellingShingle | Fang Liu Chen Liang Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach Heliyon JEL E12 E13 |
| title | Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach |
| title_full | Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach |
| title_fullStr | Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach |
| title_full_unstemmed | Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach |
| title_short | Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach |
| title_sort | analyzing wealth distribution effects of artificial intelligence a dynamic stochastic general equilibrium approach |
| topic | JEL E12 E13 |
| url | http://www.sciencedirect.com/science/article/pii/S2405844025003238 |
| work_keys_str_mv | AT fangliu analyzingwealthdistributioneffectsofartificialintelligenceadynamicstochasticgeneralequilibriumapproach AT chenliang analyzingwealthdistributioneffectsofartificialintelligenceadynamicstochasticgeneralequilibriumapproach |