Leisure-enhancing technological change by Lukasz Rachel

Join us for this weeks Macroeconomics Research Seminar, Autumn Term 2022.

Dr Lukasz Rachel from University College London will present this weeks Macroeconomics seminar; Leisure-enhancing technological change

Abstract

Modern economies are awash with leisure-enhancing technologies: products supplied in exchange for time and attention, rather than money. This paper studies where such technologies come from and how they interact with the broader macroeconomy. Leisure innovation arises endogenously, propelled by the desire to capture consumers' time and attention – inputs used to produce intangible assets such as brand equity capital. The non-rival nature of leisure products implies that the sector that is small in the aggregate can have significant effects at a macro level. In particular, leisure technology improvements lead to a decline in hours worked and lower traditional (non-leisure) productivity growth along a balanced growth path. Since zero-price leisure technologies are not measured in the official statistics and because they effectively crowd out traditional innovation, they offer a new explanation for the Solow Paradox that technical progress is visible in experience but not in productivity data. The indirect monetization of leisure technologies means that the equilibrium level of leisure-focused R&D is inefficient.

This seminar will be held on zoom at 4pm on Tuesday 15 November. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.

This event is part of the Macroeconomics Research Seminar Series.