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Economic geography, endogenous fertility, and agglomeration

  • Tadashi Morita

    ()

    (Faculty of Economics, Osaka Gakuin University)

  • Kazuhiro Yamamoto

    ()

    (Graduate School of Economics, Osaka University)

In this paper, we construct an interregional trade model that has en- dogenous fertility rates in the manner of Helpman and Krugman (1985). The presented model shows that fertility rates in a large region become lower than those in a small region because of the agglomeration of man- ufacturing firms in the former. The agglomeration of firms in a region lowers the relative price of manufactured goods to child rearing costs, which raises the fertility rates. We also find that a decline in transportation costs results in the ag- glomeration of manufacturing firms, which lowers fertility rates in both large and small regions. Finally, we 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, meaning that fertility rates in the former are always lower than those in the latter.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/1323.pdf
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Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 13-23.

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Length: 18 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:osk:wpaper:1323
Contact details of provider: Web page: http://www.econ.osaka-u.ac.jp/
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  1. Sato, Yasuhiro, 2007. "Economic geography, fertility and migration," Journal of Urban Economics, Elsevier, vol. 61(2), pages 372-387, March.
  2. Akiko Maruyama & Kazuhiro Yamamoto, 2007. "Variety expansion and fertility rates," Discussion Papers in Economics and Business 07-29-Rev.3, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Feb 2010.
  3. Sebnem Kalemli-Ozcan, 2002. "Does the Mortality Decline Promote Economic Growth?," Macroeconomics 0212008, EconWPA.
  4. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
  5. David N. Weil & Oded Galor, 2000. "Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and Beyond," American Economic Review, American Economic Association, vol. 90(4), pages 806-828, September.
  6. Sato, Yasuhiro & Yamamoto, Kazuhiro, 2005. "Population concentration, urbanization, and demographic transition," Journal of Urban Economics, Elsevier, vol. 58(1), pages 45-61, July.
  7. Kalemli-Ozcan, Sebnem, 2003. "A stochastic model of mortality, fertility, and human capital investment," Journal of Development Economics, Elsevier, vol. 70(1), pages 103-118, February.
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