Quotation Grafeneder-Weissteiner, Theresa, Prettner, Klaus. 2009. Agglomeration and Population Aging in a Two Region Model of Exogenous Growth. RIEF Doctoral Meeting, Aix-en-Province, Frankreich, 23.04-24.04.




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.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Agglomeration and Population Aging in a Two Region Model of Exogenous Growth
Event RIEF Doctoral Meeting
Year 2009
Date 23.04-24.04
Country France
Location Aix-en-Province
URL http://greqam.univ-mrs.fr/conference/ep/doc/2009/RIEF2009Programmedefinitif.pdf


Agglomeration processes in ageing societies
Grafeneder-Weissteiner, Theresa (Former researcher)
Prettner, Klaus
Department of Economics (Kubin) (Details)
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