Regulating Transformative Technologies /
Acemoglu, Daron.
Regulating Transformative Technologies / Daron Acemoglu, Todd Lensman. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w31461 . - Working Paper Series (National Bureau of Economic Research) no. w31461. .
July 2023.
Transformative technologies like generative artificial intelligence promise to accelerate productivity growth across many sectors, but they also present new risks from potential misuse. We develop a multi-sector technology adoption model to study the optimal regulation of transformative technologies when society can learn about these risks over time. Socially optimal adoption is gradual and convex. If social damages are proportional to the productivity gains from the new technology, a higher growth rate leads to slower optimal adoption. Equilibrium adoption is inefficient when firms do not internalize all social damages, and sector-independent regulation is helpful but generally not sufficient to restore optimality.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Efficiency • Optimal Taxation
Technological Change: Choices and Consequences • Diffusion Processes
One, Two, and Multisector Growth Models
Regulating Transformative Technologies / Daron Acemoglu, Todd Lensman. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w31461 . - Working Paper Series (National Bureau of Economic Research) no. w31461. .
July 2023.
Transformative technologies like generative artificial intelligence promise to accelerate productivity growth across many sectors, but they also present new risks from potential misuse. We develop a multi-sector technology adoption model to study the optimal regulation of transformative technologies when society can learn about these risks over time. Socially optimal adoption is gradual and convex. If social damages are proportional to the productivity gains from the new technology, a higher growth rate leads to slower optimal adoption. Equilibrium adoption is inefficient when firms do not internalize all social damages, and sector-independent regulation is helpful but generally not sufficient to restore optimality.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Efficiency • Optimal Taxation
Technological Change: Choices and Consequences • Diffusion Processes
One, Two, and Multisector Growth Models