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Urbanization and population contraction

Author

Listed:
  • Madoka Muroishi

    (Nanzan University)

  • Akira Yakita

    (Nanzan University)

Abstract

Urbanization is treated in the literature as a process that occurs along with economic development. We consider an overlapping generations model with two regions, designated as ‘urban’ and ‘rural’. Concentration of population to urban areas involves population inflows from rural areas, thereby exacerbating urban congestion. Inverse agglomeration economies in rural areas exert negative effects on rural income, consequently increasing the attractiveness of urban areas. Because of lower urban fertility rates, urbanization involves population decreases. Therefore, population dynamics might be explained as simultaneous urbanization and population contraction. However, depopulation mitigates congestion, which increases the fertility rate and the worker’s lifetime utility level. Eventually, it can lead to a stationary population size.

Suggested Citation

  • Madoka Muroishi & Akira Yakita, 2022. "Urbanization and population contraction," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 543-553, December.
    • Handle: RePEc:spr:lsprsc:v:15:y:2022:i:3:d:10.1007_s12076-022-00311-x
    DOI: 10.1007/s12076-022-00311-x
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    References listed on IDEAS

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    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.
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    More about this item

    Keywords

    Fertility; Migration; Population contraction; Reversely directed agglomeration; Urbanization;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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