Analyzing wealth distribution effects of artificial intelligence: A dynamic stochastic general equilibrium approach

Area of Science:

• Economics
• Computational Economics
• Technological Progress

Background:

• Artificial intelligence (AI) significantly impacts economic structures.
• Its influence on wealth distribution remains under-explored.
• Understanding AI's role is crucial for economic policy.

Purpose of the Study:

• To analyze the effect of artificial intelligence (AI) on wealth distribution.
• To model AI's impact on production technology as biased technological progress.
• To provide policy recommendations for China.

Main Methods:

• Utilized a continuous-time heterogeneous agent dynamic general equilibrium model.
• Investigated AI's influence on production technology.
• Analyzed the rate of return on capital under different AI scenarios.

Main Results:

• AI demonstrates a temporal dichotomy in wealth distribution: short-term increases in inequality.
• Long-term effects are contingent on AI's domain-specific penetration.
• Short-term rise in the rate of return on capital across all technological progress forms.

Conclusions:

• AI's impact on wealth inequality is complex and time-dependent.
• Policy interventions are necessary to balance AI-driven growth with equitable wealth distribution.
• Findings offer insights for China's economic strategy and global economic discourse.