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

Description

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.

Period	23 Apr 2009 → 24 Apr 2009
Event title	RIEF Doctoral Meeting
Event type	Unknown
Degree of Recognition	International