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Economic Geography, Endogenous Fertility, and Agglomeration

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  • MORITA Tadashi
  • YAMAMOTO Kazuhiro

Abstract

In this study, we construct an interregional trade model that includes endogenous fertility rates. The presented model shows that the agglomeration of manufacturing firms in a large region causes fertility rates to become lower than that in a small region. The agglomeration of firms in a region lowers the price of manufactured goods relative to child rearing costs, which reduces fertility rates. We also find that a decrease in transportation costs results in the agglomeration of manufacturing firms, which lowers fertility rates in both large and small regions. We then extend our two-region model to a multi-region model and find that the number of manufacturing firms in larger regions is always greater than that in smaller regions. Therefore, fertility rates in larger regions are always lower than in smaller regions.

Suggested Citation

  • MORITA Tadashi & YAMAMOTO Kazuhiro, 2014. "Economic Geography, Endogenous Fertility, and Agglomeration," Discussion papers 14045, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:14045
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    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.
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    Cited by:

    1. Takanori Ago & Tadashi Morita & Takatoshi Tabuchi & Kazuhiro Yamamoto, 2018. "Elastic labor supply and agglomeration," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 350-362, March.

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    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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