substitutes for labor, the higher productivity and economic growth. At the same time, this leads to increased inequality by favoring income from capital and higher-skillwork. Simulations suggest redistribution comes at the cost of effciency, but with the right policy design, all income groups can gain.
Abdychev and others (2018) adapt the basic modeling approach in Berg, Buffe, and Zanna (2018) to a two-region setting. The two regions-think advanced economies and sub-Saharan Africa-differ only in their level of productivity. Labor and robots can either be substitutes
The Spring-Summer 2019 issue of the IMF Research Perspectives explores how technology deals with old questions. Articles discuss the ways technological progress and the increased availability of data have helped in some areas, while presenting new challenges for analyzing various matters. The issue also includes an interview with Gita Gopinath, the new director of the IMF Research Department.