Agglomeration and Population Aging in a Two Region Model of Exogenous Growth

  • Theresa Grafeneder-Weissteiner (Ko-Autor*in)
  • Klaus Prettner (Ko-Autor*in)

Aktivität: VortragWissenschaftlicher Vortrag (Science-to-Science)


This article investigates common economic consequences of population
aging and economic integration for agglomeration processes. We introduce demography into the New Economic Geography by generalizing the constructed capital approach to account for changes in the age structure of the population. Interestingly, the level of trade costs triggering catastrophic agglomeration is rather sensitive to changes in mortality. In particular, we find that the introduction of finite planning horizons counteracts agglomerative tendencies. This implies that, in sharp contrast to other New Economic Geography approaches, deeper integration is not necessarily associated with more interregional inequality for suffciently high mortality rates.
Zeitraum23 Apr. 200924 Apr. 2009
EreignistitelRIEF Doctoral Meeting
VeranstaltungstypKeine Angaben