Quotation Grafeneder-Weissteiner, Theresa, Prettner, Klaus. 2009. Agglomeration and Population Aging in a Two Region Model of Exogenous Growth. ERSA Congress, Lodz, Polen, 25.08-29.08.




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.


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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 ERSA Congress
Year 2009
Date 25.08-29.08
Country Poland
Location Lodz
URL http://www.ersa.org/ersa-congress/


Agglomeration processes in ageing societies
Grafeneder-Weissteiner, Theresa (Former researcher)
Prettner, Klaus
Institute for International Economics and Development IN (Details)
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