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

  • Theresa Grafeneder-Weissteiner (Contributor)
  • Klaus Prettner (Contributor)

Activity: Talk or presentationScience to science

Description

This article investigates common consequences of population aging and economic integration for agglomeration. We introduce demography
into the New Economic Geography by generalizing the constructed capital approach to account for finite planning horizons. Interestingly, the level of trade costs triggering agglomeration is rather sensitive to changes in mortality. In particular, we find that a positive mortality
rate counteracts concentration of industrial activity. In sharp contrast
to other New Economic Geography approaches, agglomeration processes
may thus not set in even if economic integration is promoted up
to a high degree.
Period25 Aug 200929 Aug 2009
Event titleERSA Congress
Event typeUnkonwn
Degree of RecognitionInternational