IDEAS home Printed from https://ideas.repec.org/a/spr/jecrev/v70y2019i4d10.1111_jere.12213.html
   My bibliography  Save this article

Geography and Demography: New Economic Geography with Endogenous Fertility

Author

Listed:
  • Hiroshi Goto

    (Chiba University of Commerce)

  • Keiya Minamimura

    (Kansai Gaidai University)

Abstract

To explain the links between demographics and economic integration, we construct a new economic geography model with endogenous fertility. Labour mobility across regions results in more people flowing into highly populated regions, but lowers fertility rates there. Finally, regions are divided into one very large region with a higher real wage and another small region with a lower real wage, a higher fertility rate and a supply of workers to the large region. The population growth path resembles a logistic curve in the early phase, but population decreases in the last phase. Economic integration leads to population concentration and decreases population size.

Suggested Citation

  • Hiroshi Goto & Keiya Minamimura, 2019. "Geography and Demography: New Economic Geography with Endogenous Fertility," The Japanese Economic Review, Springer, vol. 70(4), pages 537-568, December.
  • Handle: RePEc:spr:jecrev:v:70:y:2019:i:4:d:10.1111_jere.12213
    DOI: 10.1111/jere.12213
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1111/jere.12213
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1111/jere.12213?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Akiko Maruyama & Kazuhiro Yamamoto, 2010. "Variety expansion and fertility rates," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(1), pages 57-71, January.
    2. Fujita, Masahisa & Krugman, Paul, 1995. "When is the economy monocentric?: von Thunen and Chamberlin unified," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 505-528, August.
    3. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    4. Fujita, Masahisa & Mori, Tomoya, 1997. "Structural stability and evolution of urban systems," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 399-442, August.
    5. Frédéric Docquier, 2004. "Income Distribution, Non-convexities and the Fertility-Income Relationship," ULB Institutional Repository 2013/229564, ULB -- Universite Libre de Bruxelles.
    6. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    7. Omer Moav, 2005. "Cheap Children and the Persistence of Poverty," Economic Journal, Royal Economic Society, vol. 115(500), pages 88-110, January.
    8. Gary S. Becker & Kevin M. Murphy & Robert Tamura, 1994. "Human Capital, Fertility, and Economic Growth," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 323-350, National Bureau of Economic Research, Inc.
    9. Schultz, T Paul, 1985. "Changing World Prices, Women's Wages, and the Fertility Transition: Sweden, 1860-1910," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1126-1154, December.
    10. Sato, Yasuhiro & Yamamoto, Kazuhiro, 2005. "Population concentration, urbanization, and demographic transition," Journal of Urban Economics, Elsevier, vol. 58(1), pages 45-61, July.
    11. Fujita, Masahisa & Krugman, Paul & Mori, Tomoya, 1999. "On the evolution of hierarchical urban systems1," European Economic Review, Elsevier, vol. 43(2), pages 209-251, February.
    12. Behrens, Kristian & Lamorgese, Andrea R. & Ottaviano, Gianmarco I.P. & Tabuchi, Takatoshi, 2009. "Beyond the home market effect: Market size and specialization in a multi-country world," Journal of International Economics, Elsevier, vol. 79(2), pages 259-265, November.
    13. Davis, Donald R, 1998. "The Home Market, Trade, and Industrial Structure," American Economic Review, American Economic Association, vol. 88(5), pages 1264-1276, December.
    14. Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, Oxford University Press, vol. 103(1), pages 1-25.
    15. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    16. Oded Galor & Andrew Mountford, 2008. "Trading Population for Productivity: Theory and Evidence," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 1143-1179.
    17. Mary Borg, 1989. "The Income-Fertility Relationship: Effect of the Net Price of a Child," Demography, Springer;Population Association of America (PAA), vol. 26(2), pages 301-310, May.
    18. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    19. Keisuke Kondo, 2019. "Does agglomeration discourage fertility? Evidence from the Japanese General Social Survey 2000–2010," Journal of Economic Geography, Oxford University Press, vol. 19(3), pages 677-704.
    20. Behrens, Kristian & Lamorgese, Andrea R. & Ottaviano, Gianmarco I.P. & Tabuchi, Takatoshi, 2009. "Beyond the home market effect: Market size and specialization in a multi-country world," Journal of International Economics, Elsevier, vol. 79(2), pages 259-265, November.
    21. Zhihao Yu, 2005. "Trade, market size, and industrial structure: revisiting the home‐market effect," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(1), pages 255-272, February.
    22. Hiroshi Goto & Keiya Minamimura, 2015. "Geography and Demography: New Economic Geography with Endogenous Fertility," Discussion Paper Series DP2015-33, Research Institute for Economics & Business Administration, Kobe University.
    23. Sato, Yasuhiro, 2007. "Economic geography, fertility and migration," Journal of Urban Economics, Elsevier, vol. 61(2), pages 372-387, March.
    24. Barro, Robert J & Becker, Gary S, 1989. "Fertility Choice in a Model of Economic Growth," Econometrica, Econometric Society, vol. 57(2), pages 481-501, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Madoka Muroishi & Akira Yakita, 2021. "Agglomeration economies, congestion diseconomies, and fertility dynamics in a two-region economy," Letters in Spatial and Resource Sciences, Springer, vol. 14(1), pages 51-63, April.
    2. Hiroyuki Hashimoto & Tohru Naito, 2021. "Urbanization, waitlisted children, and childcare support in a two‐region overlapping generations model," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1068-1089, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hiroshi Goto & Keiya Minamimura, 2015. "Geography and Demography: New Economic Geography with Endogenous Fertility," Discussion Paper Series DP2015-33, Research Institute for Economics & Business Administration, Kobe University.
    2. Hiroshi Goto & Keiya Minamimura, 2014. "Fertility, Regional Demographics, and Economic Integration," Discussion Papers 1405, Graduate School of Economics, Kobe University.
    3. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2010. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Chapters, in: Demography and the Economy, pages 43-100, National Bureau of Economic Research, Inc.
    4. José M. Gaspar, 2018. "A prospective review on New Economic Geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 237-272, September.
    5. Tadashi Morita & Kazuhiro Yamamoto, 2018. "Interregional Fertility Differentials and Agglomeration," The Japanese Economic Review, Japanese Economic Association, vol. 69(2), pages 171-188, June.
    6. Hege Medin, 2017. "The reverse home-market effect in exports: a cross-country study of the extensive margin of exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(2), pages 301-325, May.
    7. Sun, Tianyu & Wei, Sichao, 2022. "Longer parental time and lower fertility rate," The Journal of the Economics of Ageing, Elsevier, vol. 22(C).
    8. Dierk Herzer & Holger Strulik & Sebastian Vollmer, 2012. "The long-run determinants of fertility: one century of demographic change 1900–1999," Journal of Economic Growth, Springer, vol. 17(4), pages 357-385, December.
    9. Jakob Madsen & Holger Strulik, 2023. "Testing unified growth theory: Technological progress and the child quantity‐quality tradeoff," Quantitative Economics, Econometric Society, vol. 14(1), pages 235-275, January.
    10. Tamotsu Nakamura, 2018. "Solow meets Stone–Geary: Technological progress and the demographic transition," Metroeconomica, Wiley Blackwell, vol. 69(4), pages 768-790, November.
    11. Fernández-Villaverde, Jesús & Delventhal, Matthew J. & Guner, Nezih, 2021. "Demographic Transitions Across Time and Space," CEPR Discussion Papers 16708, C.E.P.R. Discussion Papers.
    12. William Lord & Peter Rangazas, 2006. "Fertility and development: the roles of schooling and family production," Journal of Economic Growth, Springer, vol. 11(3), pages 229-261, September.
    13. Do, Quy-Toan & Levchenko, Andrei A. & Raddatz, Claudio, 2016. "Comparative advantage, international trade, and fertility," Journal of Development Economics, Elsevier, vol. 119(C), pages 48-66.
    14. Juan Cordoba & Marla Ripoll & Xiying Liu, 2019. "Accounting for the International Quantity-Quality Trade-off," 2019 Meeting Papers 156, Society for Economic Dynamics.
    15. Marla Ripoll & Juan Carlos Cordoba, 2011. "A Contribution to the Economic Theory of Fertility," 2011 Meeting Papers 1207, Society for Economic Dynamics.
    16. Daniel Aaronson & Fabian Lange & Bhashkar Mazumder, 2014. "Fertility Transitions along the Extensive and Intensive Margins," American Economic Review, American Economic Association, vol. 104(11), pages 3701-3724, November.
    17. Oded Galor, 2012. "The demographic transition: causes and consequences," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 1-28, January.
    18. Tomer Blumkin & Yoram Margalioth & Efraim Sadka, 2015. "The Re-distributive Role of Child Benefits Revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 476-501, June.
    19. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    20. Sunha Myong & JungJae Park & Junjian Yi, 2021. "Social Norms and Fertility," Journal of the European Economic Association, European Economic Association, vol. 19(5), pages 2429-2466.

    More about this item

    Keywords

    F15; R12; R23;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jecrev:v:70:y:2019:i:4:d:10.1111_jere.12213. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.