Prof. David Hémous

UBS Foundation Associate Professor of Economics of Innovation and Entrepreneurship

Discover Prof. David Hémous on

David Hémous received his PhD from Harvard University in 2012. He is a macroeconomist working on economic growth, climate change and inequality. His work highlights that innovation responds to economic incentives and that public policies should be designed taking this dependence into account. In particular, he has shown in the context of climate change policy that innovations in the car industry respond to gas prices and that global and regional climate policies should support clean innovation to efficiently reduce CO2 emissions. His work on technological change and income distribution shows that higher labor costs lead to more automation, and that the recent increase in labor income inequality and in the capital share can be explained by a secular increase in automation. He has also shown that innovation affects top income shares. He was awarded an ERC Starting Grant on 'Automation and Income Distribution – a Quantitative Assessment' and he received the 2022 'European Award for Researchers in Environmental Economics under the Age of Forty'.

Interests

Macroeconomics, International Trade, Technological Change and Innovation, Environmental Economics

UBS Foundation Associate Professor of Economics of Innovation and Entrepreneurship

Prof. David Hémous

Discover Prof. David Hémous on

David Hémous received his PhD from Harvard University in 2012. He is a macroeconomist working on economic growth, climate change and inequality. His work highlights that innovation responds to economic incentives and that public policies should be designed taking this dependence into account. In particular, he has shown in the context of climate change policy that innovations in the car industry respond to gas prices and that global and regional climate policies should support clean innovation to efficiently reduce CO2 emissions. His work on technological change and income distribution shows that higher labor costs lead to more automation, and that the recent increase in labor income inequality and in the capital share can be explained by a secular increase in automation. He has also shown that innovation affects top income shares. He was awarded an ERC Starting Grant on 'Automation and Income Distribution – a Quantitative Assessment' and he received the 2022 'European Award for Researchers in Environmental Economics under the Age of Forty'.

Interests

Macroeconomics, International Trade, Technological Change and Innovation, Environmental Economics

Work in progress & publicationsBrowse

Selected publications

  • The Rise of the Machines: Automation, Horizontal Innovation, and Income Inequality with Morten Olsen American Economic Journal: Macroeconomics 2022, 14 (1): 179-223 download

  • Green innnovation policies UBS Center Public Paper No.10 2021 download

  • The Environment and Directed Technical Change with Daron Acemoglu, Philippe Aghion, and Leonardo Bursztyn American Economic Review 2012, 102(1): 131–166 download

  • Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry with Philippe Aghion, Antoine Dechezleprêtre, Ralf Martin, and John Van Reenen Journal of Political Economy 2016 download

  • The dynamic impact of unilateral environmental policies Journal of International Economics Volume 103, November 2016, Pages 80-95 download

  • Innovation and Top Income Inequality with Philippe Aghion, Ufuk Akcigit, Antonin Bergeaud, and Richard Blundell, The Review of Economic Studies 2019 download

  • Work in progress & further publications browse

Research

David Hémous analyzes how innovation shapes long-term economic trends and how policies can affect innovation. In particular, he studies the role of innovation in the design of climate policies. How to control and limit climate change caused by our consumption of fossil fuels is one of the most pressing policy challenges facing the world today. While policymakers and climate scientists regularly emphasize the need to develop green technologies, economists have often ignored the role of endogenous innovation in the design of climate change policies and computed optimal carbon taxes accordingly. In his research, David sheds light on this issue by building theoretical economic models, evaluating them quantitatively and testing empirically their underlying assumptions on firm level data. His work emphasizes that innovation reacts strongly to policy and that climate policies should aim at redirecting innovation toward clean technologies.

Hémous also looks at the role played by innovation in the recent increase in income inequality. Rapid technological progress in IT, robotics or self-driving cars have heightened concerns that automation will lead to more inequality. Here as well, the economic literature has often viewed technological progress in automation as an exogenous event. Yet, in his research, Hémous shows that as an economy develops and wages increase, innovation becomes naturally more directed toward automation, which can account for the rise in the skill premium quantitatively. He also confirms empirically with patent data, that automation innovations increase with higher low-skill wages. This matters from a policy standpoint, because policy interventions have different long-term effects depending on whether automation is endogenous or exogenous.

Relatedly, developed economies have also experienced an increase in the share of income going to the top 1%. If this increase were to result from an increase in rents (through inheritance or a decline in competition), a strong policy response would be warranted. Hémous shows, however, that an increase in patented innovations is also in part responsible for the rise in the top 1% share.

David Hémous analyzes how innovation shapes long-term economic trends and how policies can affect innovation. In particular, he studies the role of innovation in the design of climate policies. How to control and limit climate change caused by our consumption of fossil fuels is one of the most pressing policy challenges facing the world today. While policymakers and climate scientists regularly emphasize the need to develop green technologies, economists have often ignored the role of endogenous innovation in the design of climate change policies and computed optimal carbon taxes accordingly. In his research, David sheds light on this issue by building theoretical economic models, evaluating them quantitatively and testing empirically their underlying assumptions on firm level data. His work emphasizes that innovation reacts strongly to policy and that climate policies should aim at redirecting innovation toward clean technologies.

Hémous also looks at the role played by innovation in the recent increase in income inequality. Rapid technological progress in IT, robotics or self-driving cars have heightened concerns that automation will lead to more inequality. Here as well, the economic literature has often viewed technological progress in automation as an exogenous event. Yet, in his research, Hémous shows that as an economy develops and wages increase, innovation becomes naturally more directed toward automation, which can account for the rise in the skill premium quantitatively. He also confirms empirically with patent data, that automation innovations increase with higher low-skill wages. This matters from a policy standpoint, because policy interventions have different long-term effects depending on whether automation is endogenous or exogenous.

David Hémous on Google ScholarBrowse

Videos

In the media

  • We and the machines UZH Magazin 2/19 Dossier of 17.6.2019 (in German) read

  • Automation - a gradual process Progressive Post of 29.1.2019 read

  • L’automatisation est inhérente à la croissance économique Le Monde of 28.5.2018 (in French) read

Quotes

Contrary to popular belief, the automation of work and everyday tasks will not happen overnight. It will be a gradual process over time. It is important to channel this change.
Wenn Menschen von Robotern ersetzt werden, steigt die Produktivität. Wir werden reicher.

Interviews and features

2019

2015

Images

Contact

Personal

Support Staff

Name:

Natascha Baer

Office hours:

Monday, Tuesday, Thursday

Address

University of Zurich

Department of Economics, Schönberggasse 1, 8001 Zürich
(Google Maps)