Working paper: In this paper, I show that frictions (Search in the labor market and capital adjustment costs) matter for the outcome of workers and firms' decision to automate tasks in production. I do this by constructing a DSGE model w. two different production technologies which allows me to model the effects of different capital-labor complementarities and the spillover effects of automation shocks in one industry into another.

Work-in-progress, Joint with Rune Vejlin, Christopher Taber and Carl Sanders