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Agglomeration processes in aging societies

  • Theresa Grafeneder-Weissteiner

    ()

    (Department of Economics, Vienna University of Economics & B.A.)

  • Klaus Prettner

    ()

    (Vienna Institute of Demography, Austrian Academy of Sciences)

This article investigates agglomeration processes in aging societies by introducing an overlapping generation structure into a New Economic Geography model. Whether higher economic integration leads to spatial concentration of economic activity crucially hinges on the economies' demographic properties. While population aging as represented by declining birth rates strengthens agglomeration processes, declining mortality rates weaken them. This is due to the fact that we allow for nonconstant population size. In particular, we show that population growth acts as an important dispersion force that augments the distributional effects on agglomeration processes resulting from the turnover of generations.

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Paper provided by Vienna University of Economics and Business, Department of Economics in its series Department of Economics Working Papers with number wuwp131.

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Date of creation: Jun 2010
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Handle: RePEc:wiw:wiwwuw:wuwp131
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  1. Klaus Prettner, 2009. "Population ageing and endogenous economic growth," Working Papers 0908, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  2. Theresa Grafeneder-Weissteiner & Klaus Prettner, 2009. "Agglomeration and population ageing in a two region model of exogenous growth," Working Papers 0901, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  3. Michael Kuhn & Stefan Wrzaczek & Alexia Prskawetz & Gustav Feichtinger, 2010. "Externalities in a Life-Cycle Model with Endogenous Survival," Working Papers 1001, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  4. Stefan Wrzaczek & Michael Kuhn & Alexia Prskawetz & Gustav Feichtinger, 2009. "The Reproductive Value in Distributed Optimal Control Models," Working Papers 0906, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
  5. Klaus Prettner & Alexia Prskawetz, 2009. "Decreasing Fertility, Economic Growth and the Intergenerational Wage Gap," Working Papers 0906, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
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