Agglomeration processes in aging societies

Theresa Grafeneder-Weissteiner, Klaus Prettner

Publication: Working/Discussion PaperWU Working Paper

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Abstract

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)
Original languageEnglish
Place of PublicationVienna
PublisherDepartment of Economics, WU Vienna University of Economics and Business
DOIs
Publication statusPublished - 2010

Publication series

SeriesDepartment of Economics Working Paper Series
Number131

WU Working Paper Series

  • Department of Economics Working Paper Series

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