Agglomeration processes in aging societies

Theresa Grafeneder-Weissteiner, Klaus Prettner

Publikation: Working/Discussion PaperWU Working Paper

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This article investigates agglomeration processes in aging societies by introducing an overlapping generation structure into a New Economic Geography model. Whether higher economic integration leads to spatial concentration of economic activity crucially hinges on the economies' demographic properties. While population aging as represented by declining birth rates strengthens agglomeration processes, declining mortality rates weaken them. This is due to the fact that we allow for nonconstant population size. In particular, we show that population growth acts as an important dispersion force that augments the distributional effects on agglomeration processes resulting from the turnover of generations. (author's abstract)
HerausgeberDepartment of Economics, WU Vienna University of Economics and Business
PublikationsstatusVeröffentlicht - 2010


ReiheDepartment of Economics Working Paper Series

WU Working Paper Reihe

  • Department of Economics Working Paper Series