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Geography and Demography: New Economic Geography With Endogenous Fertility

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  • Hiroshi Goto
  • Keiya Minamimura

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, Japanese Economic Association, vol. 70(4), pages 537-568, December.
    • Handle: RePEc:bla:jecrev:v:70:y:2019:i:4:p:537-568
    DOI: 10.1111/jere.12213
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    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.

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