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Re-thinking the capabilities of machines in economics

Abstract:
The literature exploring the effects of technological change on the labour market often relies on a very particular understanding of the capabilities of machines - known as the 'ALM hypothesis'. However, this hypothesis has often led this literature to underestimate these capabilities. Tasks that were believed to be out of reach of automation can now be automated. I set out two explanations for this underestimation - one that is explored in the recent literature and maintains the ALM hypothesis, and a new explanation that challenges it. I propose a new hypothesis that contains the ALM hypothesis as a special case. Revised: April 2018
Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2017-05-17
Paper number:
825


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Pubs id:
1143560
Local pid:
pubs:1143560
Deposit date:
2020-12-14

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