Pascual Restrepo

One is we have a tax code that creates a big bias in favor of capital instead of labor.

That's something I've written about with Andrea Manera and Pascual Restrepo.

The market outcomes conditional on that distortion will not be optimal.

Second, something I've written about with Pascual Restrepo, if there are labor market imperfections and workers are paid above their outside option, like in search model, bargaining, efficiency wages, etc., then the equilibrium will have too much automation and too much demand for automation from companies because companies automate according to the wage that workers receive.

A social planner would use the opportunity cost of labor in that decision, and the wage between the two can be quite large.

I was thinking about, you know, I was thinking about that paper.

Is that putting words in your mouth?

Okay, so both on the issue of AGI versus pro-worker AIs, and capital taxes versus labor taxes, I have tried to have my cake and eat it too, which is that I've argued, in fact, the growth negatives from these policies wouldn't be that major.